Frigid Weather Drives Sales in Russia, China, Korea

SANDY PARKER REPORT, VOL. 29, ISSUE 45, JANUARY 23, 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
Frigid Weather Drives Sales in Russia, China, Korea
RETAIL FUR SALES IN THE HUGE AND STILL-GROWING MARKETS of Russia, China and Korea continue to move along at a healthy pace with the aid of frigid temperatures, but the return of mild weather is hampering sales elsewhere. At the same time, the movement of fur products around the world this season has not only resulted in reduced inventories at the retail and wholesale levels, but also has created a bigger appetite for fresh skins just as the new auction season is about to get under way. The stage apparently is set for a new round of price increases on top of the major advances registered over the past two years.
But, whereas the initial price jump two years ago caused some concern about possible consumer resistance, actual experience has proved such fears to have been unfounded. Nevertheless, market veterans – while elated by the prospect of again doing business in a rising market – still harbor some reservations. Many recall the boom years of the mid-1980s, when mink prices peaked only to plunge. This was repeated a decade later and this year’s prices are expected to surpass the all-time highs of 1995. But an examination of the circumstances then and now offers some encouragement. In 1987, for example, the U.S. still dominated the mink market and the Wall Street crash that year effectively removed most of the support for fur prices. Similarly, the plunge from the 1995 peak followed an economic crisis in Russia, which was then the major mink buyer.
The current situation is much different and the likelihood of a price plunge is considered remote. With China and Russia, today’s dominant fur buyers, both enjoying economic prosperity as well as flourishing fur sales, they are expected to continue to play major roles at the auctions with the support of other important countries.
IN THIS ISSUE:
World Skin Stocks Seen Low
New Price Hikes Expected
Ranchers Plowing Back Profits
U.S. Broker Indicted in Probe
Bid-Rigging on Otters Charged
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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