The price of silk has doubled since the start of 2009 and now stands at its highest level in at least 15 years, the Financial Times reported, citing data from the China Cocoon and Silk Exchange. The price of silk cocoons, the raw material for the fabric, reached US$13,570 per tonne in mid-April. Rapid urbanization of the key silk-producing region surrounding Shanghai has reduced available land for mulberry trees, the only food that silk worms eat. Chinese output declined 15% to 84,000 tonnes last year, and a drought that began in late 2009 has exacerbated the slide in production. Analysts forecast prices will rise further, while some believe Chinese investors are squeezing the market by hoarding silk in the hope of increased demand and price climbs. China accounts for 70% of global silk production.
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