In June, the Chinese cashmere market has seen increasing prices on a daily basis leading the market to being out of control. Despite the high increases in price, dehairing manufacturing plants are buying as much greasy cashmere fibre as possible. Cashmere brokers on the other hand continue being reluctant to sell, as greasy cashmere is sold out in every region of the country.
At the end of June, Mongolia has exported more than 5.800.000 kilos of cashmere including both scoured and dehaired.
In total 80.000 kilos of dehaired cashmere have already been exported out of Mongolia to the following countries:
Italy – 74 tons
India- 2.5 tons
Japan – 1.4 tons
The cashmere market in Mongolia closed at the end of May with no further relevant movements in June.
Cashmere prices are very high. Afghan traders are the main buyers and their lots are transported to Herat and then continue to China.
As usual, in a hot market, the temptation towards dishonest practices increases. More and more inferior quality cashmere is artfully blended with normal quality to be sold as top quality.
Traders have also spread rumours of supply shortages due to all cashmere being sold off when in fact cashmere regions started clipping later than usual due to a cold spring.