Just thought I would post for those wondering about the market.
November 26, 2013
November has seen warmer temperatures than usual in both China and Russia, which has been reflected in retail sales being slower than last year. The weather has just turned colder in northeast China, which is the most important consumer market for fur.
China has experienced some import problems since mid-summer and as a result, a number of Chinese dealers have been investigated and ranch mink, fox and a limited quantity of wild fur was confiscated. Unfortunately this is not a new problem, but due to the high prices of all furs, the Chinese Central Government has become more interested in taxing the importation of pelts.
For all of us, however, the most important factor for a successful season remains the weather. With a normal, cold winter in China and Russia, we will again see a prosperous market.
We should also keep in mind that for many of our wild furs such as coyote, red fox and most sections of raccoon, the trimming business is our biggest customer. The trimming business is a much more worldwide business, with activity in all major markets, and is not as dependent on China and Russia.
The real retail of fur coats in China and Russia starts right now and continues for the next seven or eight weeks. These retail results will determine the prices, especially for ranch mink. Recent reports out of Russia are indicating that the price levels that were established this past year, especially better quality ranch mink, are meeting resistance and most likely will result in lower sales, but most Russian retailers purchased less last year and therefore are more prepared for this decline.
The pelts that are being produced right now are all going to be used for the 2014/15 retail season. This is one of the reasons that we do not have a December or January auction any more – the timing is no longer correct. In fact, statistically, the December auctions in Scandinavia have been on the low side for 9 out of 10 years.
In China, Chinese New Year is when the traders, merchants, retailers, etc. all settle their accounts and estimate what profits they made over the past year. For 2014, Chinese New Year falls on February 5, which puts our February auction in a perfect position for Chinese and all buyers to be able to convert the cash they made from this retail season into purchases of product for next retail season. NAFA is very proud to be the only auction company selling our superior quality collection in North America.
We would like to take this opportunity to wish all of our American shippers and friends a very Happy Thanksgiving.
