Skin price structure seen set

SANDY PARKER REPORT, VOL. 33, ISSUE 3, MARCH 2, 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

Skin price structure seen set

MIDWAY THROUGH THE SEASON’S FIRST ROUND OF MAJOR AUCTIONS finds the skin price structure for the year ahead pretty much established, judging from the high turnover of the initial offerings. Prices are down sharply from the peaks they reached last year, a direct reflection of the financial meltdown that has taken place virtually around the world. This has not only reduced the spending power of international dealers and manufacturers, but also has resulted in government curbs – notably by Russia, one of the largest buyers – on the outflow of hard currencies such as euros and American dollars.

UNTIL THIS YEAR, IT WAS THE COMBINATION OF CHINA AND RUSSIA that was providing power for the ranched and wild fur markets, including the former’s skin purchases for the production of garments for the russian market. With Russian fur buying now reined in because of a sharp decline in its consumers’ disposable income and its trade now hobbled by currency restraints, it is mainly the Chinese locomotive that is moving the furs. Which should come as no great surprise, considering that Hong Kong/China had already become the fur manufacturing center producing the majority of the fur garments consumed by the world.

That China has now stepped in fully in the face of the fiscal crisis that has gripped the world  would indicate its confidence that it has a viable market at the new price levels. And not just for its domestic market, but for harder-hit countries as well. The first signs of the soundness of its judgment were expected to emerge from the big fair in Hong Kong that opened last week. Pre-fair indications were that attendance would be down from last year’s – especially from Russia – but that most of the major organizations would be there even though their budgets may be smaller.

IN THIS ISSUE:
Skin Price Structure Seen Set
Chinese Now in Full Control
Money Woes Hobble Russians
Hong Kong Prices Down 10%-20%
Consumer Confidence Plunges

For extracts from back issues of Sandy Parker Reports see News Archive. Subscribers can access an archive of complete issues at www.sandyparker.com.