Cashmere industry is still in a difficult situation since the second quarter

Jul 08, 2020  |  by zhaoxh


In the first quarter, the export, domestic consumption and pressure resistance of the cashmere industry showed certain advantages in the wool textile field. However, with the spread of the global pandemic and domestic consumption entering the off-season, the overall situation of the cashmere industry in the second quarter showed a further decline compared with the first quarter.

● The cashmere procurement market has picked up, and prices have risen slightly
According to the information summarized by the China Wool Textile Association, since May, the price of cashmere has risen slightly from April, among which there is the need for enterprises to resume production, also because the market predicted that the current price is at the bottom, resulting in the expectation of higher prices in the future.
 
● The overall export situation is declining
The overseas market share of cashmere products is relatively large. According to customs statistics, the total export of cashmere products from January to April was USD 250 million, a year-on-year decrease of 25.2%, which was still slightly better than the decline in the export value of woolen raw materials and products during the same period. However, compared with the situation in the first quarter, the year-on-year decline showed a further acceleration. Judging from the monthly changes in monthly export value, the monthly export value of various products of cashmere is still at a low level, and the export market is greatly
hindered.

Figure 1. Monthly comparison of total export of cashmere products from January to April 2020
(Monthly export value, unit: USD 10,000)





The two main products, cashmere yarns and cashmere sweaters, accumulated cumulative exports from January to April fell by 14% and 33% year-on-year, respectively, which has been consistent with the overall decline in wool yarn and wool knitted apparel over the same period. It can be said that the export situation of cashmere products is more difficult after entering the second quarter.
Several major markets for cashmere product exports showed a significant decline. The export value of the U.S. and Japan markets, which mainly export final products, fell by more than 40%, and the export value of the ASEAN market, which exported more intermediate products, fell by more than 20%. The export volume of the EU market, the most important export destination for cashmere products, fell by 19%. The export situation of all major export destinations deteriorated from the first quarter.
Due to changes in the current international economy and anti-pandemic situation, the pandemic situation in Europe has stabilized. The China Wool Textile Association’s judgment on the export situation in the first half of the year believes that the basic situation remains unchanged and should be restored in the second half of the year.
 
● A profound impact on the consumer market
From the perspective of the domestic market consumption situation from January to May, as of May, the year-on-year decline in the total retail sales of domestic social consumer goods has narrowed to 2.8%. While domestic consumption has steadily recovered, our textile and apparel consumption has also recovered, because of the greater impact in the early stage, recovery is slower. Woolen products are affected by seasonal factors, and the situation is even less optimistic. As a high-end consumer product, cashmere products will gain more recognition from the market and win the market from the natural, green, sustainable and quality aspects in this far-reaching pandemic period.
(Source: China Wool Textile Association)

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2024.12   

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