MARKETING RAW SILK
1. MARKETING METHODS
[Sidenote: _Principal Markets_]
The principal raw silk markets of the world are Yokohama, Lyons, New
York, Milan and Canton. Of these, Yokohama is probably the largest
and most important, due to the pre-eminent position of Japan in raw
silk production.
RAW SILK PRODUCTION, INCLUDING TUSSAH SILK
SEASONS 1917-1918 TO 1922-1923
==============================================================
1922-1923 1921-1922 1920-1921
Crops in Pounds Pounds Pounds Pounds
——————————————————————————————————————————————————————————————
Europe 8,841,000 7,628,000 8,058,000
Viz:
Italy 8,234,000 7,066,000 7,330,000
France 437,000 430,000 551,000
Austria .... .... ....
Spain 170,000 132,000 177,000
——————————————————————————————————————————————————————————————
Levant 1,543,000 1,213,000 1,654,000
——————————————————————————————————————————————————————————————
Asia: Total Quantity
Exported[5] 57,439,000 53,941,000 35,138,500
Viz:
China, Shanghai [6]8,628,000 [6]6,993,000 [6]6,518,500
China, Canton 7,050,000 5,735,000 4,210,000
Japan, Yokohama 41,541,000 40,982,000 24,300,000
India 220,000 231,000 110,000
——————————————————————————————————————————————————————————————
Total, Pounds 67,823,000 62,782,000 44,850,500
Tussah 2,034,000 1,856,000 1,650,000
——————————————————————————————————————————————————————————————
Grand Total, Pounds 69,857,000 64,638,000 46,500,500
——————————————————————————————————————————————————————————————
================================================================
1919-1920 1918-1919 1917-1918
Crops in Pounds Pounds Pounds Pounds
————————————————————————————————————————————————————————————————
Europe 4,927,000 6,978,000 7,154,000
Viz:
Italy 4,045,000 5,942,000 6,217,000
France 397,000 540,000 452,000
Austria [7]331,000 [7]331,000 [7]331,000
Spain 154,000 165,000 154,000
————————————————————————————————————————————————————————————————
Levant [7]2,293,000 [7]2,293,000 [7]2,293,000
————————————————————————————————————————————————————————————————
Asia: Total Quantity
Exported[5] 51,860,000 45,475,000 48,026,000
Viz:
China, Shanghai [6]10,225,000 [6]9,209,000 [6]8,563,000
China, Canton 7,093,000 3,704,000 5,170,000
Japan, Yokohama 34,222,000 32,308,000 34,050,000
India 320,000 254,000 243,000
————————————————————————————————————————————————————————————————
Total, Pounds 59,080,000 54,746,000 54,473,000
Tussah 1,960,000 1,561,000 1,534,000
————————————————————————————————————————————————————————————————
Grand Total, Pounds 61,040,000 56,307,000 59,007,000
————————————————————————————————————————————————————————————————
[5] The production of raw silk in China and India is unknown. The
Japan crop is approximately 47,000,000 pounds.
[6] Excludes Tussah silk.
[7] In the absence of statistics from Austria and the Levant, 1915
production is used as an estimate.
Courtesy of The Silk Association of America
[Illustration: _Unpacking Bales of Raw Silk_]
[Sidenote: _Yokohama Silk Exchange_]
The Yokohama Raw Silk Exchange operates on a basis similar to that
of the various cotton exchanges, and transactions are carried
on in “futures” as far ahead as five months. The speculative
element is very active and its influence is often felt extensively
throughout all phases of the industry. On several occasions it has
been necessary to close the exchange to avert real disaster after
the quotations have been manipulated to an unbelievable extent.
During the last few years the Japanese Government and various silk
organizations have, by law and regulation, succeeded in improving
this situation to a very great degree, and the benefit has been felt
throughout the industry.
[Sidenote: _Conditioned Weight_]
Raw silk is sold by weight—in Yokohama, by net weight, that is,
less wrappings, etc. Of recent years in most countries it has
been the custom to deal by conditioned weight, and as a result
the conditioning process has become an important side line in the
industry.
2. CONDITIONING
[Sidenote: _Invoice Weight_]
Conditioning is desirable principally on account of the fact that raw
silk absorbs considerable moisture. A careless buyer may find after
delivery that he has purchased more water than he has silk. To avoid
this possibility, Asiatic and European markets in particular have
adopted the conditioned weight basis—absolute dry weight plus 11 per
cent moisture. Quotations are often given on invoice weight, which is
conditioned weight plus a 2% margin for variation.
A conditioning house, besides examining for weight, also conducts
numerous other tests necessary to conditioned silk. The main
factors taken into consideration, besides weight, are size, color,
cleanliness, boil-off, winding strength, elasticity, and general
uniformity.
[Sidenote: _Weight_]
As regards size, the unit is the denier, an ancient French weight
equal to .05 gram; the size is measured by the weight in deniers of
450 meters of the thread. As previously stated, the 13/15 denier
size is the standard used in the United States, although the larger
and smaller grades are dealt in to some extent for special types of
products. Size is always given as averaging between certain deniers
(such as 13 to 15) as it is impossible to attain absolute accuracy in
reeling, and slight variations cannot be avoided, either within the
bales or within the skeins themselves.
[Sidenote: _Color_]
The color test is concerned merely with uniformity in shade, which
makes accurate dyeing possible. The cultivated silks are either pure
white or yellow, according to the variety of cocoon from which they
are derived.
[Sidenote: “_Boil off_”]
The term “boil off” refers to the amount or percentage of gum on the
filament. As explained before, the individual strands of fibre adhere
together through a gummy substance secreted by the worm. The amount
found in the reeled silk varies with different kinds from 10 to 25
per cent by weight—which is brought down to a minimum by the boiling
process.
[Sidenote: _Winding Strength_]
Winding strength is measured by the breaks that occur in winding. In
this country the test is based on the number of breaks occurring in
30 or more skeins wound at the rate of about 120 yards per minute.
This test is extremely important since a weak thread can do much to
hinder an efficient re-reeling process, inasmuch as each break stops
the machine and must be tied by the operator.
3. GRADING AND QUOTATIONS
[Sidenote: _Classification_]
[Sidenote: _Difficulties in Grading_]
The question of classification of raw silk for market and the
various terms used for its purchase and sale is a complicated one.
Standardization has been sought after for a good many years and
committees both here and abroad have studied the problem on various
occasions—but without entirely satisfactory results. The chief source
of trouble appears to lie the many types of variation that may occur,
not only on account of the great number of qualities required in the
product, but also due to the varying conditions under which the silk
is produced. In the early days of the industry, when farm production
was the chief source of supply, particularly in Japan and China,
satisfactory grading was almost an impossibility. However, now that
sericulture and reeling has come more and more into the hands of the
large companies and filatures, a greater degree of standardization
can be reached.
[Sidenote: _Quotations_]
The following is an actual example of a recent quotation list in the
New York market as it appeared in a commercial paper:—
JAPAN
(Ninety Days’ Basis, 13-15 Denies)
Kansai Double Extra Cracks $6.15 @ $6.20
Kansai Double Extra “A” 6.05 @ 6.10
Kansai Double Extra “B” 6.00 @ 6.07
Kansai Best Extra 5.95 @ 6.02
Kansai Extra 5.90 @ 5.97
Kansai Best No. 1 to Extra 5.87 @ 5.95
Kansai Best No. 1 5.85 @ 5.92
Kansai No. 1 5.82 @ 5.90
Sinshiu No. 1 5.77 @ 5.85
CANTON
(Ninety Days’ Basis)
King Seng gr. 14-16 $6.40
Favorite—Double Extra 20-22 6.00
Favorite—Double Extra 22-26 5.90
SHANGHAI
(Ninety Days’ Basis)
CHINA STEAM FILATURE
Gold Double Deer, new crop $7.50
Geranium, new crop 7.25
Comet 6.60
Tsatless Blue Dragon and Flying Horse 5.60
Black Lion, No. 1-2 5.10
Tussah—Best chops 3.90
ITALIAN
Grand Extra Classical $7.00
Extra Classical 6.80
Best Classical 6.70
[Illustration:
RAW SILK PRICES
NEW YORK MARKET
1913-1923
Courtesy of The Silk Association of America
]
[Sidenote: _Kansai and Sinshiu_]
In the Japanese classification, Kansai and Sinshiu originally
indicated the section of Japan where the silk originated, but of
recent years they have come to mean hard or soft natured silks
respectively. The “Sinshiu No. 1” is usually considered the standard
quotation to use in judging the market trend.
[Sidenote: “_Chops_”]
The Chinese quotations are probably the most difficult to understand
since they go almost entirely by “chop”—that is, well-known brands
which are marked in some distinctive way, as shown on the above list
of quotations.