Chinese manufacturers hold line on prices

SANDY PARKER REPORT, VOL. 30, ISSUE 21, JULY 10, 2006
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
Chinese manufacturers hold line on prices
THE SURPRISING FIRMNESS OF PRICES IN THE RECENT SALE AT KOPENHAGEN FUR evidently has caused Chinese manufacturers to have second thoughts about cutting their wholesale prices even slightly. As reported earlier, buyers heading for that sale had expected prices to ease from their previous highs just as they had in Finland and at the two May sales in North America. They also voiced doubts that the auction company would be able to maintain a high percentage of turnover and thought it would have to make some sacrifices in order to keep prices from drifting lower, especially in view of the huge quantities being offered. But the strength of the demand from a larger-than-usual Chinese crowd was said to have surprised even the auction officials.
As a result, the word out of China last week was that most factories will be holding the line on prices for the time being. Although some were said to have been contemplating slight reductions if the sale had followed the downtrend, the actual results are dictating otherwise. Neither the Finnish nor the American mink are anywhere near as important to the Chinese as the Danish skins. According to an estimate by Kopenhagen Fur over a year ago, the Chinese market accounts for between 65% and 70% of the Danish crop of over 12 million mink.
SPRING RETAIL BUSINESS IN THE UNITED STATES was surprisingly good, according to a spot check of independent stores in the major markets. The spring months traditionally are minor contributors to the year’s volume and usually more significant as an indicator of consumer interest and a portent of what retailers may expect when the new season opens up. From that standpoint, the message they are getting is that consumers are still in a spending mood and that furs are on their minds.
IN THIS ISSUE:
Broker’s Pact Making New Waves
Trade Doubts Evidence Exists
China Mfrs. Holding Line on Prices
U.S. Service Business Good
Buyer Traffic Down in N.Y.
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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