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ReturnSURESH MEHTA ANALYSIS(21)--Review on silk market(Dated on May 18,2006)
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admin
PublishDate：
2006-05-18 13:53:00
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dear friends
raw silk - stability is the need.
raw silk never ceases to amaze , last year it defied every one by going up and up and this year down and down , why is it so volatile ?
however i think till now the correction have been right and now the
time is come for stability because india is following chinese quotes now and every lower quote is only fuelling panic . china has to remain stable now or there will be no demand the whole of this year . with the indian silk season coming up shortly it is better to remain stable then going downwards. it is also heartening to see the futures showing stabilty for last three days and if continues like this for next few weeks then the market will get stable and stronger , creating the right atmosphere and mood for indians to start buying again . restoring confidence in buyers is very important now or we may see a situation with no bottom for raw silk.
regardless of the anti dumping on fabrics raw silk has two way benefits , if anti dumping is imposed then raw silk demand will be huge in india and if not imposed then fabric orders will also be very good , both ways it is helpful for the market. the indian fabric importers are only waiting for it to be imposed or postponed as it is still not clear when it will be implemented .once the situation is clear the fabric demand will also start irrespective of the anti dumping imposed or not .it is only the waiting period which is the hardest time to pass but patience will help the industry . the bottomline is raw silk cannot get affected in any situation and remaining stable will help both the chinese and indian silk industry . so as we said last year the ball is in chinese
court now , either they make it or break it , it all depends on the trend we witness in china .
b rgds
suresh mehta
raw silk - stability is the need.
raw silk never ceases to amaze , last year it defied every one by going up and up and this year down and down , why is it so volatile ?
however i think till now the correction have been right and now the
time is come for stability because india is following chinese quotes now and every lower quote is only fuelling panic . china has to remain stable now or there will be no demand the whole of this year . with the indian silk season coming up shortly it is better to remain stable then going downwards. it is also heartening to see the futures showing stabilty for last three days and if continues like this for next few weeks then the market will get stable and stronger , creating the right atmosphere and mood for indians to start buying again . restoring confidence in buyers is very important now or we may see a situation with no bottom for raw silk.
regardless of the anti dumping on fabrics raw silk has two way benefits , if anti dumping is imposed then raw silk demand will be huge in india and if not imposed then fabric orders will also be very good , both ways it is helpful for the market. the indian fabric importers are only waiting for it to be imposed or postponed as it is still not clear when it will be implemented .once the situation is clear the fabric demand will also start irrespective of the anti dumping imposed or not .it is only the waiting period which is the hardest time to pass but patience will help the industry . the bottomline is raw silk cannot get affected in any situation and remaining stable will help both the chinese and indian silk industry . so as we said last year the ball is in chinese
court now , either they make it or break it , it all depends on the trend we witness in china .
b rgds
suresh mehta
