CASHMERE MARKET REPORT

OCTOBER – NOVEMBER 2019

 

CHINA

In October, the price of finer type cashmere decreased again by about 10%, but with a consistent regain in November. Compared with last year’s 2018 October to November, the price of cashmere fibres reduced around 30%, due to a weak market. On top of that, the production volume is a bit higher than last year. In this case, the supply is higher than the demand. On the opposite, the price of lambs in 2019 is much higher than last year, which means farmers can compensate their revenue by selling mutton. Since the cashmere is easy to be stocked, the farmers are waiting for better prices to sell. The US is the largest market for exporting Chinese cashmere. Due to the trade war with the United States, taxes for exporting cashmere to the USA increased. As the economy becomes weaker, the market for cashmere continues to be very bad.

MONGOLIA

Also, in Mongolia, the market has come to a standstill without significant movements. After the continuous decrease in prices between September and October, the prices are now stable. Compared to November 2018 the general prices have dropped by around 10 to 15%.

MIDDLE EAST

The market in the Middle East has been completely stuck, with no transactions. Chinese traders approached the market in November hoping to use this quiet situation but could not convince traders to sell at their desired prices and left leaving a low bid which has not been met by any seller.
Prices are down in local money but still high in terms of hard currency, which still leads to Middle Eastern dehaired cashmere prices being relatively competitive with Mongolian prices.

CASHMERE MARKET REPORT

July – August 2019

 

CHINA

After a crazy collecting period during the last 2 to 3 months, the traders now have enough stock. At the same time, demand is still not good. The price of cashmere is 10% less than July 2018. Compared with prices in June, the situation is basically unchanged. For finer cashmere types, the price is still on the high level because of limited availability. The prices for low and medium qualities should come down shortly. Recently the RMB has been getting weaker, due to the trade war between China and the US. This is offsetting some increase in prices.

MONGOLIA

Mongolia is still the second-largest producer of cashmere in the world with 10.000 tons of greasy cashmere.
From 2015 to 2019 the cashmere production was constant and almost 90% of whole cashmere production is exported to foreign countries (89% exported to China and 11% to European countries).
Main importers in the EU are Italy, the UK, Germany. However, globally the main players are always Chinese buyers.
In the first 7 months of 2019, almost 75% of cashmere was exported. Compared to July 2018 the exported quantity of cashmere has increased by 5.2%.
The cashmere price has been stable over the first five months of the season and now it is expected to follow the EU/Chinese market trend for the next months.

MIDDLE EAST

News of a poor international market and low prices of Mongolian stock in Europe has reached the Middle East and has at least halted the price hike. Although no Chinese buyers are present in the market now, the market is still stable and no trader is willing to reduce its prices and sell with a loss, hoping that prices will strengthen again after the European summer has ended.

CASHMERE MARKET REPORT

April 2019

CHINA

Due to high prices during the last cashmere season, cashmere demand declined noticeably compared to July 2018. During February and March 2019, prices had reduced slightly. However, once the newly harvested greasy cashmere entered the market in April 2019, prices increased once again reaching the high levels of December 2019. Momentarily the market is quiet due to low availability of cashmere, especially finer fibres. Brokers and processors are nevertheless buying the new season’s offerings even though demand further down the supply chain is still poor.

MONGOLIA

This year the greasy market has opened 13% more expensive compared to last year. Winter has been very dry and without snowfalls, causing high presence of dust, low yield and lower quality in greasy cashmere. The cashmere growing regions have still not had any rain.
Demand for Mongolian cashmere is coming predominantly from China while European buyers have not yet expressed any interest in Mongolian cashmere.

MIDDLE EAST

Due to very a very unusual spring climate with cold temperatures as well as rain across the whole country, cashmere goats have not been clipped yet. The small quantities being traded these weeks are unsold stocks from last year. Prices have remained unchanged compared to March 2019.

CASHMERE MARKET REPORT

February – March 2019

CHINA

After the Chinese New Year in the middle of February, the price for cashmere has been increasing steadily. Also in March, the price increased by around 10% compared to February. Compared to March 2018, the price is 30% higher. The demand for cashmere seems also to go up a little as the new season approaches.

MONGOLIA

So far the market in Mongolia has been quieter compared to last year. Annual production of cashmere is estimated around 9.000-10.000 tons of greasy. Snowfalls have been completely absent throughout all winter, resulting in worse and dusty quality, with a lower yield. But contrary to expectations the season has started with prices 13% more expensive than 2018.

A slight decrease in price is expected due to lack of quality during the next few weeks. Main buyers are Chinese as usual.

MIDDLE EAST

The market was quieter than usual during February/March because for over one month, export of all types of cashmere was banned. This was a government decision in support of the local carpet industry which had asked for a ban on wool and authorities had mistakenly prohibited cashmere export as well. Removing this directive took a long time and as a result, purchase was minimized. February/March is the period for tannery and now some good tannery is left unsold which may be mixed with spring clip lowering the final yield.

By the time this ban was repealed, the end of the season had already arrived and the market is now waiting for the new clip which usually should be out in April/May. But very heavy rain all over the Middle East will delay the new clip and it is now anticipated that new arrivals will be only available in May.