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 29th Jun 2017

Indian textile industry will reach new milestone by 2020

By 2020, textile technologies will be highly advanced not only with...

Alessandro Zucchi; Courtesy: ACIMIT

Textiles | On 29th Jun 2017

Alessandro Zucchi succeeds Carabelli as ACIMIT president

The members’ assembly of the Association of Italian Machinery...

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eamonn Tighe
Nature Works LLC

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

Rupa Sood and Sharan Apparao
Nayaab

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


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