Home / Knowledge / News / Textiles / High raw material price dampens cashmere export business
High raw material price dampens cashmere export business
02
Dec '10
Restricted supplies of raw materials and inflation within China have caused an increase in the purchase of raw materials. This has caused the prices to escalate, which may lead to a fall in the cashmere exports in the coming year.

The influence of inflation and scarcity of raw materials on most of the companies involved in cashmere exports is expected to be serious. Majority of the companies are likely to experience a decline in their cashmere exports.

Around 8,000 tons of raw cashmere wool is produced every year in China. Apprehensions regarding the upsurge in the prices of raw materials have driven many Chinese companies to purchase raw cashmere, which has caused the price to touch record high level during the last few months.

Price of raw cashmere registered a hike of 12 percent to touch 840,000 Yuan ($125,255) per ton this month as against the price recorded in the same period, the previous year. The higher prices are likely to reduce the profit margins of Chinese exporters as the prices of cashmere products in the global market have not increased in line with that of the raw materials.

A low growth rate has been estimated in the overall cashmere exports of China, this year. A yearly growth of 15 percent is anticipated, this year. The export volume, for the initial nine months of the current year, has registered a hike of 23 percent, from a year ago.

Currently, China is the largest supplier of raw cashmere wool, constituting 75 percent of the total production in the world. After China, Mongolia and Afghanistan occupy the second and the third ranks among the raw cashmere suppliers of the world. About three-fourths of overall cashmere products are manufactured in China and are exported to the markets in Europe and US.

There is an increasing need to promote the brand value of the Chinese cashmere products as well as improve its quality, in order to sustain the consistency of the country's export business and confront the difficulties imposed by the rising price of raw cashmere.


Fibre2fashion News Desk-India


Must ReadView All

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search