EU imports of cashmere sweaters are no more surging this year after quotas were reimposed on shipments from China. Retailers continue developing sales of low-priced 100% cashmere, however, thanks to a rise in imports through Hong Kong. Mauritian companies in Madagascar and Bangladeshi exporters are taking advantage of new limits on Chinese products. Import prices may decline in the next year after steadily rising in 2005 and 2006.
Low-priced cashmere sweaters are again attracting consumers in European cities this year, thanks to surging imports from a few sources, including China, but also Madagascar and Bangladesh.
With Brussels reimposing quotas on cashmere sweaters from China this year, however, import prices of cashmere sweaters did not decline, far from it.
100% cashmere articles were purchased at 31.29 euros per piece on average in the January-August period, up 7.05% from a year ago.
Prices had already increased 7.85% in the same period of 2005.
Higher prices this year may also reflect higher raw material costs for cashmere knitters in China and elsewhere.
Higher cashmere prices
Cashmere prices, while not surging, steadily rose in the past two years, according to Italian specialist G. Schneider.
The market for cashmere fibers looks more stable than in the past decades, however, when prices repeatedly surged, disturbing world markets for cashmere clothing and accessories.
China's output accounts for a dominant share of global production of cashmere fibers.
In the past ten years, Beijing decided developing textile and clothing production rather than selling dehaired fibers to Italian or Scottish processors.
The largest part of China's sweaters are sold to Japan and the United States with EU only accounting for 20% of exports.
Lower prices ahead?
This share could however further jump in the next years, after quotas will disappear.
According to French news agency AFP, 100 % cashmere jumpers were recently sold at 17.50 euros at Interselection, a Paris-located fair focusing on low-cost production.
This would prefigure a sharp fall in import prices for next year's deliveries.
EU imports from China surged 457% in volume terms in 2005, resulting in a 92% rise in total shipments from foreign countries.
In the first eight months this year, shipments from China only increased by 11%, but products were also sent through Hong Kong with a 202% rise in imports from the SAR.
Mauritius and Bangladesh
Madagascar was effectively protected by EU quotas on imports from China, however, with its share of EU import market slightly rising.
Malagasy production is mainly controlled by Mauritian manufacturers who relocated their knitwear industry to the low-cost country.
Bangladesh is also taking advantage of EU quotas, with shipments more than doubled in 2005 and in the first eight months of the current year.
Both countries enjoy a duty-free access on EU's territory while China must pay import duties of 12%.
