China Mink skins Market review August 2022
Market performance after the June Auction
It seems that China Mink skins market is slowly recovering, unlike the frozen status during the period of Feb to the May, China garment producers have started buying skins from the dressed skins market since July. They are trying to produce the garments with this year’ new cheap skins, through which, they can lower their existing high-cost garments inventory built last years, otherwise, their sales will be crushed by the cheap garments offered by the fur coat shops next to his shop.
The recovery started from the SAGA auction of June 2022, in which, SAGA have dropped the auction prices significantly, auctioned prices were far more lower than the production cost, that prices stimulate the nerve of buyers, especially the speculators, who would like to gamble on the skins future prices, they believed that the prices will drop no more, it is right time to build their inventory, so they bought a lot and bought whatever skins they believed a bargain , and wait for the right moment to sell.
Some of those speculators have good sense both on the skins and garments market, they choose skins types carefully, focusing on the colored skins only, and this cautious is paying back now, the colored skins prices are increasing stably. But for the buyers, who have betted on the brown, mahogany, black, they still can’t see the profit now, the prices for dark colored skins are sluggish, and barely no increase after the June auction
Light Colored Skins VS. Brown and Black
European colored skins opportunity is actually coming from the incapacity of the China local mink farm, who are incapable to produce and select light colored fur skins. Currently, Brown/Black/White/Silver blue are the major types produced by China local mink farms, those kind of skins quality has been well improved in the past several years. Local Chinese breeder minks were mixed with European breeder minks, and now the China local mink skin quality maybe is still little lower than the European minks, but those Chinese mixed minks have very good balance between the price and quality of the garment producers, that has built their competitive advantage.
Colored skins are also benefiting from the trend of new type of garments design and Online fur garment sales model. Nowadays the online celebrity promotion sale model has helped the buyers to build the confidence of buying fur coat online, so the fur coat online sale is getting stronger and stronger, compared with the traditional offline sale, online buyers are relative younger than the offline buyers, their favored garments are more lighter colors oriented, this preference is leading the demanding of colored skins, especially for the white, pearl, palomino, which can be dyed to varied fashionable light colors.
The Covid-19 quarantine policy in China
The China government is tending to seek the balance between the economy development and quarantine now, but the zero-tolerance quarantine policy is still applying, so there is still the potential market closure risk in the coming autumn and winter garments sale season, but fur business in China is at least in a better position compared with last year’ situation.