During the 2nd NingXia Cashmere Trade Fair from 10th Sept. to 12th Sept., our Chinese representative met some of our old suppliers from Inner Mongolia and some people from NingXia. He exchanged views about the present domestic dehaired cashmere market with them and got their offers of their dehaired cashmere stocks. Finally he got some information as follows:
Firstly, this year most of the cashmere processing mills didn’t buy as much cashmere as before one reason being that Chinese banks didn’t give as many loans because of the Chinese government’s strict financial policy. Secondly the Chinese cashmere companies spent most of their money on other business like mining and real estate and didn’t have enough money left to buy cashmere materials because they found they couldn’t get enough profit from this.
He was told by them there is still a lot of greasy cashmere available in the producing areas, some said a half of the total Chinese cashmere collection is left and some said a third.
During the last few years, Chinese herdsmen have introduced a lot of cashmere goats from north-eastern China to Inner Mongolia and other main producing areas in order to get bigger yields than before from each goat. This year we found that the Chinese cashmere micron is coarser than the previous year. At the fair, most of the mills told him they couldn’t offer any W4W Chinese cashmere at 15.1 or 15.2 micron. They can only offer W4W Chinese cashmere around 15.5 micron. Brown Chinese cashmere is not as plentiful and shorter than in previous years. Most of the mills have no brown Chinese cashmere to offer and the ones that do their longest brown Chinese cashmere is 32-34mm.
We feel that eventually Chinese prices may fall slightly, but at this time the Chinese mills are only willing to buy greasy and sell dehaired if they can make a reasonable profit. Until the economic situation stabilises and Chinese interest rates fall, many suppliers are uninterested in processing cashmere.