WITH THE BULK OF THIS YEAR'S MINK SUPPLY HAVING PASSED THROUGH THE DISTRIBUTION SYSTEM, the price structure is now firmly established at levels about 15% higher than at the opening of the auction season. However, having opened the season at around 40% under last year's record highs, the overall average is still about 25% lower than a year ago at this time. Despite the skin increases, the major manufacturers in China have taken little action, if any, on their wholesale prices, which were established in February when the mink market had not yet begun to recover.

But the manufacturers are not busy at this time and, in fact, described as looking for business to keep their big factories running. Orders written at their fair in Hong Kong, although better than expected under the circumstances, were down from a year ago. Their big Russian business has yet to open up but, considering the financial difficulties in that market and the drop in the value of the ruble, prospects do not appear to be as bright as a year ago. The Chinese are said to be counting more on their own domestic market, which has exploded in recent years and is now their biggest consumer by far.

IT IS TO THIS END THAT THEY HAVE BEEN DOMINATING THE AUCTIONS and stockpiling skins at what they consider to be bargain prices compared to last year. Retail fur sales in China were described as good last year despite the world financial turmoil that hobbled business elsewhere. Strong economic growth has enabled a larger portion of the 1.3 billion population to afford such luxuries as furs for the first time. While some of those customers may have been affected by the economy, there evidently were enough new ones.