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Four reasons for cashmere price fall

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Four reasons for cashmere price fall

Release date:2018-11-03 Author:Hebei AI Bao Cashmere Products Co., Ltd. Clicks:

Cashmere is known as the "soft gold" of cashmere industry. Under the background of global economic vigor drowning, cashmere enterprises in China generally encounter tremendous challenges. According to Hebei Neibao Cashmere Products Co., Ltd., the once brilliant cashmere industry has been no longer for many years. Cashmere industry, which is still in the shuffling stage, has not yet emerged from the disorderly competition inside and outside the backlog, market chaos, decline in the quality of cashmere and other chaotic industries. In 2014, cashmere prices in Xinjiang declined significantly. But if the price is too low, farmers and herdsmen will not sell raw velvet, so the price can only slightly decline at a rapid pace or a shock-like decline.

The main reason for the fall in cashmere prices is due to the following four points:

First, the cashmere industry as a whole is still inadequate in the amount of capital investment, and the previous stock market, property market pressure and the amount of money flowing into the sheep line market, together with speculation by the bankers, to a certain extent, the cashmere price has raised the cashmere price, cashmere prices are facing a new round of shorting.

Two is a large number of new wool market, the impact of the market, the price of sheep has a bottom danger. Every year, 46 months is the season when people and farmers begin to comb. New lines from all over the country enter the market, and the stock of new velvet is still large. After the new velvet is listed, it will inevitably form a superposition of stock, which will make the supply exceed the demand more serious, and the price will inevitably decline. However, the combing time in the mainland is about one month longer than that in the new velvet when it is put on the market. Also often miss the temporary price high.

Third, with the approaching of off-season sales of sheep's thread products, orders of new sheep products manufacturing enterprises are reduced accordingly. After a few months of slight increase in cashmere prices after the original raw materials are basically out of stock, with cashmere entering the market in large quantities, the supply-demand relationship will be broken, the volume of trade will rise, and the price will fall.

Fourthly, in the process of shuffling, enterprises with low processing capacity and low level and backward technology and equipment stop production, transfer or even close down, which affects the processing capacity of non-plush, and inevitably leads to a reduction in demand for raw wool, which will lead to a further backlog of raw wool and a decline in prices.

The above content is the cashmere manufacturer Hebei Neibao Cashmere Products Co., Ltd. for you to extract and sort out the reasons for the fall in cashmere prices. The market economy is unpredictable, real-time attention to cashmere market dynamics, so that we can make all-round preparations in a special period!


Four reasons for cashmere price fall


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