First, the cash flow of the entire cashmere industry is still insufficient, and the funds previously infiltrated by the stock market and property market to flow into the cashmere market coupled with the speculation of the dealers raise the price of cashmere to a certain extent, and cashmere prices are facing a new risk of being shorted. .
Second, a large number of new cashmere listed, the impact of the market, cashmere prices risk bottoming. Each year is the season when the herdsmen and farmers begin to comb their cashmere in April and May each year. New cashmere enters the market everywhere, plus the amount of stocks waiting for the market is still very large. After the new cashmere goes public, it will inevitably form an inventory superposition. The demand is even more serious, and prices will have to decline. The time of combing in the Mainland is about one month ahead of Xinjiang, and when the cashmere is listed in Xinjiang, it often misses the temporary high prices.
Third, with the advent of the off-season sales of cashmere products, the orders of Xinjiang cashmere products manufacturers have been reduced accordingly. After cashmere prices rose slightly in the few months after raw cashmere materials were almost unstocked, as cashmere entered the market in large quantities, the relationship between supply and demand would be broken, trading volume would increase, and prices would fall. Fourthly, in the process of shuffling, enterprises with lower processing capacity and lower levels and technological equipment lagging behind have stopped production, transferred or even closed down. This has affected the lint-free processing capability and will inevitably lead to a reduction in the demand for raw cashmere, which will cause further deterioration of the original cashmere. Backlog, making prices fall.
The cashmere industry, known as the "soft gold," under the background of weakened global economic vitality, China's cashmere companies generally face enormous challenges in their production and operations. The once-growth of the cashmere industry has ceased for many years. The cashmere industry, which is still in the reshuffle stage, has not yet emerged from the industrial malaise in which the internal pressure, disorderly competition, market confusion, and velvet quality have fallen. In 2014, the cashmere prices in Xinjiang fell significantly. However, if the purchase price is too low, peasants and herdsmen will not sell raw cashmere, so prices will only gradually decline or oscillate.
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