July – August 2018
Published August 30th, 2018 by Marco Spina
From the end of June, the price of cashmere has increased around 10% due to the decrease of production, especially on finer types.
In addition, many herders have preferred to kill their goats and sell the meat at the end of last year, causing further lack of raw fibres during this season.
Some dealers also decided to collect the limited materials available to support the high prices.
Most suppliers can only offer in short-term and small quantities.
Mongolian market has been very quiet during July and August, both because European companies were mostly on holiday but also because greasy cashmere is over in every region.
On 19 July 2018, the Mongolian government has put 15% of taxes (on greasy price) on the exportation of scoured wool, trying to reduce the massive purchases from Chinese buyers in the last years.
Prices of raw materials have increased in proportion to decline of local currency.
Already at the beginning of July, there were no stocks left, mainly being exported to China directly or through Afghanistan.