The production of new cocoons has been similar to last year, but the market of Mulberry silk quilts business came down a little bit. Besides, the price of silk filament dropped 30% compared to the end of last year; so the price of materials for silk tops has come down accordingly starting from August. After the drop of last month, the prices of materials and tops stayed stable in a reasonable position.
Thanks to an RMB depreciation, the price in USD reduced a lot, but it is not expected that RMB will go weaker in the next future.
At the end of October, the new cocoons clip has ended. The prediction is 50% less than last year due to bad weather. The price is 15% higher than last month, but it has been stable during October. The market for tops is still quiet, but the tussah silk quilts business is expected to be quite positive until
the end of the year. On top of this, the quality of tussah tops is much better than last year considering neps and contamination.