Mongolia

China have bought 60-70% of the new clip, either to dehair in UB or ship scoured back to China, which incurs export duty and means Chinese prices for Mongolian cashmere are significantly higher than material processed in UB and shipped directly to Europe. Mongolia had a reasonably mild but very dry winter resulting in high dust / sand content of cashmere, significantly reducing scouring and dehairing yields. There is very little material left in either greasy with herdsmen, or dehaired for shipment, and most dehairing factories have already finished processing for the year and closed due to lack of raw material.

For Cashmere Fibres International Ltd
David M Lee(Director)
October 2006