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Electronic prices fell across the board this week.Thursday China National Cocoon and Silk Coordination Office again warned on the price plummet. In reaction to it, CCSE electronic market showed much conflict toward the governmental intentionand the bearish marketmod. March Raw Silk closed at 199370yuan, down by 6300yuan per ton. September Raw Silk dropped by 4200 yuan per ton to 189080 yuan. There is a general mood that cocoon and silk prices for 2007 should be revalued.

Daily Chart for Sept. Raw silk　　Unit: Tuan


On the export side, Indian importers pulled down their enquiries again and again. In responding to the falling demand, it depressed the domestic prices. From experts’ view, it’s necessary for silk enterprises to increase export as well as exploit domestic market. Since the people's income level is increasing and their consumption structure is being upgraded, the silk industry shall rely more on domestic demand for its stable development.

CCSE spot market is still under pressure. However, current raw silk prices were higher than March contract prices.