Cashmere Market September 2012
Cashmere Market – September 2012
Cashmere Prices fell during early spring with the arrival of the new clip and refreshed supplies. Most origins dropped 20-25% in line with expectations of western manufacturers/retailers.
We think the larger Chinese cashmere fibre players still had large quantities of expensive stock left over from last year and the Chinese government stepped in and awarded hundreds of millions of dollars worth of interest-free loans over 10 years to encourage purchase from herdsmen to support the market. As a resultChinabegan buying heavily in June, not only Chinese but also cashmere from all origins (just when their spinning season finishes and demand usually drops).
As a result prices have increased dramatically to levels similar to last year. The Chinese government also continue to give export subsidies of 15% on knitted garments to encourage the in-flow of foreign currency. Both these issues constitute an unfair subsidy of their own industry and contravene WTO regulations. We are working with the CCMI to try and address these issues but if anyone can lobby politicians or any trade organisation we must try and stop these unfair advantages otherwise China will soon monopolise the world cashmere industry.
Stock levels in the hands of European manufacturers seem to be reasonably low as most are waiting for firm orders before committing to material purchase. Free available stock at all origins seems very limited so we cannot see any weakness in price before next year’s clip and, depending on demand, could see some firming of prices later in the processing season.
CAMEL HAIR / YAK
Camel cashmere and Yak wool prices have not fallen as the clip is available much later than cashmere. Prices of fine baby qualities have actually increased since last year due to limited availability.
CEO OF XC CASHMERE : CIAO YU WHATSAPP: 0086 15122549253