Prices dip as Russian buyers back off

SANDY PARKER REPORT, VOL. 30, ISSUE 8, APR. 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
Prices dip as Russian buyers back off
MINK PRICES BACKED AWAY FROM THEIR HIGH POINTS LAST WEEK, as Russian buyers apparently decided to take a breather following their sustained pressure that helped push prices to their recent peaks. The April sale at Kopenhagen Fur saw an increase in Chinese buyers, but not enough to offset the drop in the number of Russians present or to compensate for the absence of that buying power. However, veteran market observers tended to believe last week’s easing was only a temporary glitch and that the strength would return as the season progressed and the Russians got their second wind.
There was no official explanation for the drop in Russian participation in this auction, nor any indication of a slackening of the increasing demand for furs in the Russian market. In fact, the season just ended was described as highly successful and that market is confident of further gains in the coming fall-winter. Rather, trade speculation centers around financial considerations; that buyers operating with 90-day financing, for example, may have exhausted that credit at the opening sales and now have to clear those debts in order to renew their credit lines.
WITH THE RUSSIAN COMPETITION MUTED FOR THE TIME BEING, the huge Chinese contingent at last week’s auction seemingly had almost a clear field to itself. But that market’s pelt needs have grown enormously, not only for its factories producing garments for the world, but for China’s exploding domestic business as well. Thus, the competition among the Chinese was strong enough to keep some prices firm to previous levels, particularly the females. Last year’s observation that an increasing number of young Chinese have been taking an active role as bidders was echoed last week, a further sign that China is taking on much more than manufacturing functions.
IN THIS ISSUE:
Mink Prices Ease from Highs
Dip Laid to Russians’ ‘Breather’
More Chinese at Danish Sale
Fox, Karakul Prices Rise
U.S. Consumer Confidence Up
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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