The Fur Garments Sales Recovered in China, how about the mink Skins market?

The recent U turn of China Quarantine policy has significantly boosted the sales of the fur garments in this winter. Chinese customers, who haven’t recovered fully from the Covid affection, seem that they do not care too much about the Covid affection any more, they are rushing into the shopping malls to buy the fur coats before the coming spring festival or just order directly through the online influencers.

This sudden demanding apparently is far beyond the garment producers’ expectation, because many of the producers have laid off the workers quite earlier before this emergence of garments sales, so producers couldn’t organize the producing again now, therefore, the old garment stocks, which are either in the hands of retailers or producers, are depleted quickly.

For skins, most of the skins from last year, especially those were auctioned in last September, are still be hold by the speculators, because the skin’s price in the market now is still lower than their purchasing cost, and the demanding of skins at this moment are still very weak. But it seems that the dealers are more confident about the market than several months before due to the rebound of the fur coats sales. Most of them expect that the skins sales will be much better in 2023 compared with 2022.

Garments exporting to Russia and middle Asia countries are improved as well, orders from those countries have increased, but the prices are still low, and still can’t cover the cost of the skins producing. So, most of China local mink skins are still be hold in the hands of farmers, because the farmers won’t like to sell with current cheap market price. The unofficial number of China local skins stock is about 20 million pics and roughly around 1/3 Chinese farmers will give up the farming this year because of their loss from the past several years.

For European mink skins, it was said that the skins stock of Kopenhagen Fur is around 18 million and will be auctioned 10 million in 2023, and SAGA have 10 million old inventory and around 6 million new skins produced in 2022, hence, there are  around 26 million mink skins will be available in auctions of 2023 totally, plus the extra 5-6 million skins are still hold in China speculators’ stock now.

So, year of 2023 will be an important year for the market, both the supply and demanding are currently fully loaded, obviously the demanding of skins will increase to refill the garments stocks, and on the other side, the skins stock currently are very sufficient too. The purchasing could happen quite earlier in the first half of 2023, whether that will push the skins prices up will be determined by how people balance the situations and whether the buyers would like to pay extra prices to stock the skins for the future eventually.