Cashmere Market ReportPosted on: June 06th 2018
Cashmere market is reaching incredibly high figures in China with prices going up day by day.
We've been talking about reduced production of cashmere for years and at the end it is believed that in Inner Mongolia only, the production has decreased by 20%~30% on dehaired cashmere basis.
This will certainly cause a lot of chain reactions, and a higher price is one of them.
The price for greasy cashmere has been increasing sharply over the last month.
Last winter has been critically cold in Mongolia and this has pushed herders to reduce their livestock and sell part of it to meat market; about 4 million goats, which is around 1.000 tons of cashmere have been exported to China for this reason.
In addition to this many other goats have died during winter because of freezing temperatures, dropping the availability of cashmere from 10.000 tons to 8.000 tons.
Between Mongolia and China, the total production of cashmere of this season is only 15.500 tons.
Chinese traders are buying every possible quantity of cashmere regardless quality, yield, origin or fineness.
For all these reasons prices keep increasing week after week.
In May, price of greasy started to increase, at the beginning slowly but later on at a very fast pace.
There are Afghan and Kyrgiz traders buying in here in addition to Iranian traders who traditionally export to China. With current asking prices and in spite of local money depreciation, the finished product compared to last year this time shows an increase of 50%. Greasy price for the same period shows 100% increase.