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Although it may be considered as crocheting (look at the crochet hook in the first step) it is, technically, knitting.

First, pull the thread into the cardboard tube from the upper to the down part - the piece of the thread should be visible in the down part.

Upper part - the one with the wire, down part - well, the other one :)

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Burdastyle

http://burdastyle.com//techniques/tubular-knitting/technique_steps/8