Prices tested support levels (Oct. 23rd,2006- Nov. 3rd, 2006)
Author:
admin
PublishDate:
2006-11-03 17:02:00
Hit:
463
CCSE electronic prices have been on the downtrend over the past two weeks as the demand seemed inadequate to absorb the former higher cocoon cost. Active March Raw Silk slumped by 21900 yuan from 267170 yuan to reach 245270 yuan per ton on Friday. And active March Dried Cocoon was seen 5600 yuan price drop to reach 81500 yuan per ton.
Silk reeling production capability grew so tight that market players feared that ant disruption to create shortage. But the gathering of late-autumn cocoon is a bit better than expected, both for quality and quantity. Meantime, the purchasing prices in main cocoon producers are lower than mid-autumn cocoon purchasing prices. The recent prices drop over the past days also reflected the fading worries about the stability of raw materials supplies.
The export purchase also remained subdued. But the spot deals seemed some better than electronic trading performance. The price drop to some balance is helpful to the consumption of stockpiles.