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ReturnVAIBHAV KAPOOR NEWS-VIEWS（5）
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admin
PublishDate：
2006-10-24 14:18:00
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NEWS-VIEWS : Vaibhav Kapoor
“Never fear shadows….that always means there is light shining somewhere”. This is what we can say about the present silk market situation in India and China.
The Indian market this month has been only celebrating holidays and contrary to popular belief and experience the market this year has been very dull during this whole festival month. Moreover the downtrend observed in Chinese Silk Exchanges have further played its role in creating more confusion and hidden fears in the minds of people. Even availability of good and improved quality local Raw Silk (white) in Bangalore has affected the prices of Chinese Raw Silk. Though there is no situation of panic as even the traders here feel that the prices cannot go down much due to the very high cocoon prices.
People following the Chinese exchange markets closely feel that it is a temporary correction in the future market which should stabilize by the month end.
It is generally felt that after the long holidays of DIWALI and EID, which will consume the rest of this month, there will be a better demand situation in the Indian markets.
But other factors also play their role; especially the sentiment factor has always played a very important role in the movement of silk prices. The sentiment now seems weak but we have seen sentiments change very soon and it is felt that same may happened again as the scope of prices going down much in China is limited keeping in view the high cocoon prices.
The demand for silk fabrics has also not been very good this year. Many importers and traders who had imported in anticipation of higher prices in September/October have experienced loss as the cost of imported Chinese silk fabric is much higher than the prevalent price in Indian markets.
But the whole scenario is expected to improve in November with prices stabilizing after the Indian holidays. Indian importers will probably wait for sometime and place orders after getting a clearer picture. But it has been experienced that when prices fall fast, it is not very surprising or unusual to bounce back as a section of the importers view it as a buying opportunity.
The prices for Raw Silk, Tussah and Fabrics appear to be trading at bottom levels now and as soon as the market stabilizes, normal work resumes and after the people come out of their holiday mood the market should move upwards, though this upward movement is expected to be slow and gradual.
The export orders for Raw Silk and Tussah based items seem to be improving a little in these days. For Dupion only heavy orders can maintain or push the prices further and though the orders it are also not bad but they are not as expected.
But if the speculators have their way, we can observe the downtrend for may be another week, before the prices stabilize for better.
A Very Happy and Proseprous DIWALI and EID and wishing that the coming year will be better for all.
“Never fear shadows….that always means there is light shining somewhere”. This is what we can say about the present silk market situation in India and China.
The Indian market this month has been only celebrating holidays and contrary to popular belief and experience the market this year has been very dull during this whole festival month. Moreover the downtrend observed in Chinese Silk Exchanges have further played its role in creating more confusion and hidden fears in the minds of people. Even availability of good and improved quality local Raw Silk (white) in Bangalore has affected the prices of Chinese Raw Silk. Though there is no situation of panic as even the traders here feel that the prices cannot go down much due to the very high cocoon prices.
People following the Chinese exchange markets closely feel that it is a temporary correction in the future market which should stabilize by the month end.
It is generally felt that after the long holidays of DIWALI and EID, which will consume the rest of this month, there will be a better demand situation in the Indian markets.
But other factors also play their role; especially the sentiment factor has always played a very important role in the movement of silk prices. The sentiment now seems weak but we have seen sentiments change very soon and it is felt that same may happened again as the scope of prices going down much in China is limited keeping in view the high cocoon prices.
The demand for silk fabrics has also not been very good this year. Many importers and traders who had imported in anticipation of higher prices in September/October have experienced loss as the cost of imported Chinese silk fabric is much higher than the prevalent price in Indian markets.
But the whole scenario is expected to improve in November with prices stabilizing after the Indian holidays. Indian importers will probably wait for sometime and place orders after getting a clearer picture. But it has been experienced that when prices fall fast, it is not very surprising or unusual to bounce back as a section of the importers view it as a buying opportunity.
The prices for Raw Silk, Tussah and Fabrics appear to be trading at bottom levels now and as soon as the market stabilizes, normal work resumes and after the people come out of their holiday mood the market should move upwards, though this upward movement is expected to be slow and gradual.
The export orders for Raw Silk and Tussah based items seem to be improving a little in these days. For Dupion only heavy orders can maintain or push the prices further and though the orders it are also not bad but they are not as expected.
But if the speculators have their way, we can observe the downtrend for may be another week, before the prices stabilize for better.
A Very Happy and Proseprous DIWALI and EID and wishing that the coming year will be better for all.
