China's imbalance between supply and demand, silk, and so on, ultimately affect the finished product

The rise in silk raw materials has not stopped.

China, which accounts for 70% of the world's silk production, has been updated to its highest level in history due to reduced production and continued expansion in demand. In the Jiaxing Silk Exchange in a large producing area, the medium-sized 3-4A spot raw silk, the price per ton of silk broke through 500,000 yuan at the end of 2017, which was 33% higher than the same period of last year and nearly 66% higher than the beginning of 2016.

It can be seen that in the context of rising raw materials, China's domestic domestic demand increase and production reduction, coupled with speculative intervention is the main cause. With the economic development, the expansion of differentiated commodity consumption, online shopping as an example, the consumption of silk shirts is growing, and the use of differentiated mixed fabrics is very strong. On the other hand, farmers in China's domestic silk raw material production are also suffering from aging and manpower shortages, high labor costs, and insufficient supply due to conversion. Last year, due to climate and silkworm disease factors, supply was also reduced. Under this circumstance, in December last year, the Chinese government also adopted measures to put the national reserve silk 605 tons, but the price continued to rise.

The demand for silk in Japan has been relatively strong and has changed. The import volume of raw silk last year increased by 17.5% from the same period of the previous year, the amount increased by 35.1%, and the majority of raw material imports depended on China, and the price on the amount was greatly affected.

The high-grade Brazilian raw silk, which is affected by the price of Chinese silk, is also in an upward trend, and the worldwide price fluctuations are expanding. President Pan Linlong, who runs Silk's Zhonghe Company, believes that at least the price will fall before the spring of May this year. If the rise in raw materials cannot be transferred to fabrics and finished products, the impact of the weakly funded silk factory in Hokuriku, Japan will be inevitable. Also, not only the kimono industry, but also a number of interwoven materials in some fashion fields will be affected.

On the other hand, the annual sterile artificial feed for silkworms in Japan for the stable production of silk raw materials has been raised in various places. In addition to the silkonvalley factory in Hawthorn City, Kumamoto Prefecture, and the Kyotango City of Kyoto Prefecture and the kimono processing factory in Niigata Tokamachi, the kimono processing factory has also joined the industry.

The high price of Chinese silk raw materials, the price difference between the cost and the annual sterile feed for sericulture will decrease, and the expectation of silk industrialization will continue to rise.

Editor in charge: Xu Yuehua