Why did cashmere prices fall instead of rising in the winter of 2019 when mutton prices rose?
In the cold winter, keeping warm becomes a very important topic, but after the beginning of winter, mutton prices rose sharply. Why did cashmere prices fall instead of rising? What exactly is the reason?
1. The market situation of cashmere in 2019
The price of cashmere began to rise in 2016, but in 2019, cashmere began to cool off, and the price kept falling. According to statistics from the Ordos Municipal Agriculture and Animal Husbandry Bureau, this year's cashmere price is 200 yuan per kg, while the price in the same period last year was 300 to 320 yuan per kg, a year-on-year decrease of about 30%. In addition, data show that in July this year, the prices of guazi cashmere and taozi cashmere in China's cashmere market were 680,000 yuan per ton and 650,000 yuan per ton respectively, down 10.5% and 10.9% from last year.
2. Why did cashmere prices fall instead of rising?
On the one hand, this is because goats can produce cashmere and also be sold for meat. This year's mutton prices are also very high, so many herders made a lot of money by selling mutton. In addition, cashmere is relatively easy to store, so herders are not in a hurry to sell cashmere this year, and since the price has not been able to rise, herders will store cashmere, wanting to wait and see, waiting for cashmere prices to rise.
On the other hand, this is because there is too much cashmere on the market. With mutton prices rising, all regions now produce cashmere, and on top of that, this year each goat produced one to two liang more cashmere than last year. Cashmere supply on the market exceeds demand, and the price of cashmere after leaving the farm is relatively low.
In addition, with the escalation of China-US trade friction, starting September 24, a new batch of US-bound products worth 200 billion US dollars has been subject to an additional 10% tariff by US Customs, and this will be raised to 25% on January 1, 2019. More than 1,000 textile and apparel items have been affected. Amid the economic downturn, the textile industry faces enormous challenges. The United States is the main market for China's cashmere product exports, which puts many domestic textile export enterprises under greater challenge, and the impact will gradually become apparent.
Although cashmere prices have fallen to a certain extent, mutton prices are rising, and perhaps cashmere prices will rise in the future.