China inflation to affect fur exports

SANDY PARKER REPORT, VOL. 34, ISSUE 29, SEPTEMBER 27, 2010
The following extract is reproduced with permission from Sandy Parker Reports, Weekly International Fur News. Sandy Parker has been covering the fur industry for more than four decades. For most of that time he has published a weekly newsletter, detailing results of international pelt auctions, wholesale price trends, business developments and movements in the trade, as well as economic and political activities that may impact on it.
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International Fur News
with Sandy Parker
China inflation to affect fur exports?
ALTHOUGH CHINA HAS BEEN POWERING THE INTERNATIONAL FUR TRADE at the skin level almost single-handedly in recent years, that situation bears watching.
Its roaring economy and rising domestic prices have activated some warning signals from at least a few leading international economists who are predicting China’s bubble may be approaching a bursting point. Inflation there is starting to become troublesome and rising prices are prompting many employees to ask for wage increases. This in turn, is also putting pressure on manufacturers to increase their prices.
But price has been the main driving force (supported by product quality) behind China’s huge export boom. Passing along manufacturers’ cost increases to customers in the form of higher prices, therefore, is risky – but so is any sacrifice of product quality. As concerns the international fur trade, which has few options because of severe attrition of the manufacturing capabilities in the various home markets, the Chinese situation is regarded as serious.
IN THIS ISSUE
Auctions End on High Note
Peak Crowd at Finnish Windup
Mink, Foxes Top June Levels
Russia Again a Major Buyer
China Inflation to Affect Exports?
For extracts from back issues of Sandy Parker Reports see News Index. Subscribers can access an archive of complete issues at www.sandyparker.com.
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