The development of silk in the south has been steadily increasing

In Guangxi, Sichuan and other regions, there is such a phenomenon that more than 20% of the local financial reports each come from the silk industry. This may be a bit exaggerated, but from this we can easily see that the silk industry accounts for a large part of the local economic system.

In the late Qing Dynasty, relying on the rich heritage of China’s ancient silks, Hu Xueyan of Zhejiang made a major decision in the international trade of silk and silk. His vigorous “order” patriotic action was in full swing. At that time, the status of Chinese silk was internationally Who will give it to me? Looking at today's silk market, we can't help but sigh. On production, we are still the most; on quality, we are still the best; but on price, on the export market, our silk industry has suddenly come to an end. The huge Chinese silk industry has more than 80% of the world's output, and it has the world's best quality factory wire, but the pricing power is still not in our hands. Why?

In 2010, the silk industry experienced the most peak period in the industry. At the end of the year, the silk price once reached 410,000 yuan/ton or more. At that time, people shouted, and the silk industry was moving in the direction of malformation. Sure enough, after experiencing the peak, the price of raw silk has been falling all the way, and it has stumbled. By November of this year, the price of silk has dropped to around 300,000 yuan/ton. And now, the silk market is still in turmoil, strong support is still not in place, and the market outlook remains bearish.

The author and the business figures of Sichuan Antai Silk Co., Ltd. and Guangxi Silk Group have repeatedly discussed the factors that affect the silk screen market and the general direction of the market outlook. From these discussions, it is not difficult to conclude that the consumer market is still the most important factor in the silk industry. Stable prices and stable consumption are still very important.

Guangxi silk business people told the author that the biggest problem in the current silk industry is the crisis in the European and American economies, which has led to a decline in consumer prices in Europe and the United States and a reduction in spending power. As a result, exports of silk products have been severely affected. Our currency has been rising against the US dollar. Actually, for businesses, *** has been depreciating. Cocoon silk products are mainly exported to European and American markets. The settlements are calculated in U.S. dollars. The contracts with India are also calculated in U.S. dollars, which is a great blow to our exports. In the domestic consumer market, the Chinese have no idea of ​​silk consumption. Clothing, electronic products, eating and drinking, we never frown, but when it comes to the consumption of silk products, it is very low, domestic consumers seldom consume silk clothing, silk home textiles and other products. While the European and American markets are shrinking, we can only place our trust on domestic consumption. We hope that domestic consumption will give us more strength. This will make it possible for the silk industry to make a turnaround.

Sichuan Antai Silk Co., Ltd. believes that the price of cognac does not have a significant impact on cocoon silk. Cocoon wire prices mainly come from downstream consumption. The production line we produce is generally above Grade 4A, and the quality is better, but now it is clear that the price has been weak. Even if it is a quotation, it can only be between RMB 330,000/ton and RMB 340,000/ton.

From the above situation we can understand that the pricing power of silk is not in our hands! Although we are the undoubted boss of this industry. In addition to the difference in consumer attitudes, brand culture can not be ignored, "Hangzhou Silk" - this ancient term, that is, not long ago registered as a cultural symbol, not to mention the other silk industry.

After experiencing the great ups and downs of 2010 to 2011, we should ponder the question: Why is the silk market so volatile? The so-called failure of Cheng Xiaoxiao, in the final analysis, the stability and turmoil in this industry are closely related to our entire industry.

From the constant observation, some phenomena in the silk industry are indeed puzzling. Many people only like to rise rather than fall. They think that it will be good for the industry to keep rising. This is wrong. The ups and downs of the market can only hurt the entire industry, and the stable industry can achieve healthy development. Look at the 2011 market, we can easily find that in the process of rising prices, the spot is often the front, even if the disk appears to fall, the spot is still not moving for a long time, so that fell for the ** fell foul consequences.

From the discussion with the company, the author also came to a stable price region of the silk industry. Overall, the entire silk industry. 300,000 yuan to 33 million yuan / ton, in this range, the price of silk is relatively reasonable. This price will be of benefit to silk factories, silk factories and silkworm farmers. Low levels will cause damage to silkworm farmers and high levels of industry crisis.

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