New clip opened high as no stock left from last year. White for White priced over US$100. Big Chinese manufacturers are waiting as prices are too high for sweater export prices which are unchanged from last year. Export rebates for yarn and sweaters are expected to reduce 2% to 9% and 11% and dehaired prices should ease back slightly during the summer.

New clip opened slightly above last years level then increased 10-15% due to strong demand from Chinese. Prices eased back slightly during late April as bulk of greasy from Western Aimags became available, but demand from Chinese is very strong and prices will remain well above last year’s level.

Prices have increased sharply due to high demand from Chinese (particularly White) to cheapen blend prices for garment exports. Prices likely to remain high for foreseeable future.

New clip will not be available until later in the summer and little or no stock available for prompt. Prices have doubled over the last year and expected to remain high due to strong domestic demand.

Similar position to camel. China are bleaching to disguise fibre structure and blending into lower cashmere qualities.

Only fibre to have fallen in price due to quality problems during earlier high demand. We no longer offer Chinese Angora but do have a limited quantity of South American Super Grade available in fibre or Tops.

Prices also higher due to strong domestic demand in China. Future market movement will be influenced by next cocoon harvest in July.

Chinese manufacturers are very busy producing for winter 07/08, keeping raw material prices very firm. European and western manufacturing now has very little effect on market movement.

For Cashmere Fibres International Ltd