SANDY PARKER REPORT, VOL. 33, ISSUE 18, JUNE 15, 2009
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 powers world fur trade
THE CHINESE LOCOMOTIVE CONTINUES TO BE THE MAIN FORCE BEHIND THE INTERNATIONAL FUR TRADE, almost single-handedly gobbling up the auction offerings and sending prices steadily higher. The just-concluded sale in Helsinki saw mink prices increase as much as 20% over March levels in euros and even more in weaker dollars. This also set the stage for this week’s huge auction in Copenhagen, where prices are expected to advance even further, virtually assuring a round of wholesale garment hikes will shortly be initiated by manufacturers in Hong Kong/China and elsewhere.
While the world’s sour economy and increasing unemployment has put a damper on consumer spending in general – China included – that country’s fur trade remains optimistic. Market veterans can only grope for explanations, but point out that the recent retail season there turned out to be decent and that all it takes is for a fraction of a percent of the 1.3 billion population to buy a fur item and 20 million or more pelts are quickly accounted for. That mink prices dropped about 40% this year has made the item more attractive to a wider audience, thus fueling the optimism and attracting more players to the game.
THE JUST-ENDED AUCTION AT FINNISH FUR SALES drew nearly 550 buyers from all markets, but mostly from China. Throughout the sale of mink, foxes and other items, the competition remained keen. In all, a total of 2.7 million mink were nearly 100% sold, the only resistance appearing in connection with the offering of 200,000 East European mink, which were 85% sold at prices 10% above March levels. There was renewed interest in foxes, which also drew stronger prices than in March, but the averages in the big blue category were still below production cost and it was unclear what breeders’ plans would be.
IN THIS ISSUE:
China Powers World Fur Trade
Dominates Finnish Mink, Fox Sale
Sends Prices Up Another 5%-20%
Danish Prices Seen Moving Up
U.S. Imports Drop Sharply