Dried Cocoons Price Trend and Forecast

Dried Cocoons Regional Price Overview

Get the latest insights on price movement and trend analysis of Dried Cocoons in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Dried Cocoons Price Trend for the First Half of 2024

In the first half of 2024, the dried cocoons market in India faced a challenging period as prices remained stagnant, much to the dismay of sericulturists, particularly. Despite the favorable dry season, which typically improves the quality of silk cocoons, the market did not respond with the expected price increases. This stagnation in prices, despite rising production costs for labor, mulberry plantations, and transportation, has raised concerns among farmers about the profitability and future viability of sericulture.
 

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Many sericulturists expressed worry that if the situation persists, it could lead to a decline in the production and trade of silk cocoons, ultimately impacting the overall silk production in the region. While government policies and market developments have generally supported the silk industry, the lack of price movement for dried cocoons in H1 2024 has highlighted the challenges that sericulturists face in balancing production costs with market returns. The steady supply-demand chain in the market has done little to alleviate these concerns, as the prices failed to meet the farmers' expectations, leading to growing uncertainty about the future of sericulture in the area.

Analyst Insight

According to Procurement Resource, Dried Cocoon prices are expected to exhibit similar stagnancy in the upcoming months; market drivers suggest a stable outlook going forward.
 

Dried Cocoons Price Trend for the Second Half of 2023

In the second half of 2023, the dried cocoons market in India exhibited signs of stability and gradual growth following the recovery in mulberry silk production, which rebounded to 27,654 metric tonnes (MT) during the 2022-23 period after a significant downturn during the COVID-19 pandemic. The resurgence in production was largely driven by technological advancements and support provided by the Central Sericultural Research and Training Institute in Mysuru, which introduced improved sericulture practices and high-yielding mulberry varieties to farmers in key sericulture states like Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu.

These innovations led to increased cocoon yields and more efficient silk production processes, helping to stabilize the market after the disruptions caused by the pandemic. The development of new mulberry varieties, such as the G-4, and the acceptance of double hybrid cocoons further contributed to the market's resilience. Despite the challenges of rising costs and previous market uncertainties, the industry's ability to adapt and improve has supported a steady price trend, ensuring that sericulture remains a viable livelihood for farmers in the region as they continue to navigate post-pandemic conditions.

Analyst Insight

According to Procurement Resource, Dried Cocoon prices are likely to stagnate going forward as the gap between the supply and demand dynamics is increasingly narrowing down.
 

Dried Cocoons Price Trend for the First Half of 2023

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Dried Cocoons are primarily produced in China, and the Chinese Dried Cocoons industry exhibited totally mixed market sentiments in H1 2023. The prices rose continuously in the first quarter while a sharp decline was observed in the second quarter.

The commencement of the Lunar New Year Holiday season in the first quarter flooded the market with fresh demands, especially since the market was shut previously because of the covid 19 pandemic restrictions. The demand for silk from the international market was also high. Hence, the Dried Cocoons prices rose from around 2185 USD/MT (Spot FD) in January’23 to about 21715 USD/MT (Spot FD) in March’23.

However, as the quarter shifted, the demands took a sudden hit; since silk is not a very summer-friendly fabric, its popularity dipped in the summer months, and the prices started declining because of the overfilled inventories and lowered demands. The average spot prices dropped to around 19847 USD/MT by the end of the second quarter. Overall, mixed market sentiments were observed.

Analyst Insight

According to Procurement Resource, the price trend of Dried Cocoon are expected to improve going forward, as the upcoming winter season will have silk in high demand. Hence, the inquiries from the downstream fabric and garment industries are expected to rise.

Procurement Resource provides latest prices of Dried Cocoons. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.