CASHMERE

CHINA / MONGOLIA

Prices continue to increase since availability of the new clip to a point where even the Chinese manufacturers struggle to pass on replacement levels.  There has been little or no activity over the summer months but prices show no sign of weakening.  Available quantity of greasy has been drastically reduced – Chinadown to 5-6000 tons from 11-12000 tons and Mongolianow below 3000 tons down from 5-6000 tons of 2-3 years ago.  Both Chinese and Mongolian fibre is coarser this year as herders have slaughtered the younger goats to take advantage of high meat prices.  Stock levels in Europeseem quite low and shortage of prompt material could cause price increases during 4th and 1st quarter as demand outstrips supply.

 

AFGHAN / IRANIAN

China have bought most of the new clip which is now nearly all sold and would normally be available to purchase from origin well into the new year.  Prices have been pushed up to Mongolian levels and we anticipate a shortage over the winter months.  Next year’s clip will not be available until May/June + lead time for shipping and processing, September/October at the earliest.

 

CAMEL / YAK

Higher cashmere prices are stimulating good demand particularly for finer types; outstripping very limited supplies.  The new clip is only just available now and almost all sold at origin.  The limited supplies we have secured will not be available inEuropebefore November and once sold there will be no further quantity available until end 2012.

 

Conclusion

We anticipate a difficult year as manufacturers struggle to absorb high prices which we expect to continue for the coming season due to fibre shortages from all origins.  We advise securing supply when available as good quality fibre will definitely be in short supply after the end of the year.

David Lee – 7 September 2011.