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

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search