Known As The "Soft Gold" Fur Market Is Still Low Price, No Market

From the beginning of this year to September, thousands of fur enterprises have closed down in China, but the fur which has been called "soft gold" can not be sold this year. What happened in fur industry?

1、 The price of Hebei fur fell year after year Sell a piece of fur to lose 80 yuan

Suning County, Hebei Province, is the fur trading center of the nation, trading up to 500000 fur pieces a day. However, due to the impact of the epidemic this year, the trading volume and trading amount have dropped sharply, with only 100000 pieces of fur per day.

Located in Suning County, Hebei Province, Shangcun fur trading market is one of the seven largest fur markets in China. Since the outbreak this year, the whole market seems a bit cold. August and September have always been the traditional peak season for fur trading, but now only a few days of the market every month seem lively.

Wholesalers told reporters that since 2013, fur prices have plummeted. From 2015 to 2019, fur prices picked up slightly, but this year's epidemic brought the slightly improved industry back to the freezing point. As many shops import fur from abroad through auction, the sales market is mainly in high latitude countries, such as Russia, Norway and Finland. The stagnation of foreign trade has greatly affected the sales.

Mr. Lu, wholesaler of Jingnan international fur trading market in Shangcun, Suning County, Hebei Province: this fox skin sold for 1000 yuan. When the market was good in 2016, a piece of fox skin sold for about 1500 yuan, and it was 1080 yuan the year before last. According to the current price, we should compensate a little.

Fur sales are not buy and sell immediately. Most of the wholesalers received the goods last year. Affected by the epidemic situation, the fur price this year is not ideal, but in order to recover the funds, they have to bear the pain and sell at a loss. Wholesalers usually use gestures to negotiate prices. Due to the differences in quality and size, the price of each fur is also different.

Industry insiders told reporters that although the fur demand is gradually increasing in autumn and winter, due to the current stagnation of export sales, wholesalers can only rely on the domestic market, and the overall supply of fur is still greater than demand.

Li Jing, general manager of Jingnan international fur trading market, Shangcun village, Suning County, Hebei Province: in the past, the annual turnover of the original leather trading market was about 4 billion yuan, but this year it was affected by the epidemic situation. Now it belongs to the sales peak season, but this year's sales peak season is relatively weak, because the order volume has decreased, especially after the cancellation of the export order volume, the domestic sales order volume has not increased significantly.

2、 A raccoon dog lost 50 yuan Variety improvement is in a vicious circle

Since 2013, the fur industry has gradually entered the cold winter. Although it has recovered slightly in recent years, this year's epidemic has completely disrupted the pace of industry recovery. Fur wholesalers there, the import price is higher than the sales price, so that many merchants have suspended the purchase of fur. What is the situation of farmers?

Not far from Suning fur trading center in Hebei Province is Zhang Tiecheng's farm. In 2003, Zhang Tiecheng, who was engaged in fur wholesale in Dalian, took a fancy to the high efficiency of fur farming and devoted himself to it.

Zhang Tiecheng told reporters that he currently has 5000 foxes and raccoon dogs. At present, each fox can only sell about 300 yuan, while the price of raccoon dog is only 200 yuan.

Zhang Tiecheng, raccoon breeder in Suning County, Hebei Province: the cost of raccoon dog is about 200 yuan now, and the cost of fox is about 300 yuan, even though the cost of raccoon is about 200 yuan. A fox and raccoon dog lose about 50 yuan.

Due to the low profit, in recent years, the scale of local breeding has been decreasing year by year, and this situation is not only in Hebei Province. According to the data, in 2019, the number of minks taking skins in China was 11.69 million, a decrease of 43.61% over the same period of last year, while that of foxes was 14.43 million, a year-on-year decrease of 17.02%.

Zhang Tiecheng told reporters that in the past few years when the market was good, farmers would introduce high-quality varieties to breed foxes and raccoon dogs, but now breeding is not making money. Most farmers adopt the method of self breeding, which makes it difficult to improve the quality of fur. The quality of domestic fur is lower than that of imported fur. It is more difficult to sell foxes at a good price.

Industry insiders told reporters that due to differences in quality, fur processing enterprises are more willing to buy foreign fur through auction. However, the sales volume of domestic farmers declined further, resulting in a vicious circle. At present, the domestic retail farming does not save one.

3、 The price of fur clothing dropped by 60% in 7 years Supply and demand may gradually balance in the future

Fur, once a luxury, is now in dire condition. What are the reasons behind the industry? In the case of farmers and wholesalers losing money, what is the situation of finished fur clothing?

The reporter learned in the interview that the decline of fur price in recent years is mainly related to supply and demand. In 2015, a large number of fur farmers and wholesalers entered the industry due to lower efficiency. Supply far exceeded demand, which led to a fall in prices.

He Sucheng, vice chairman of Huasi holding: China used to be the largest fur consumer market in the world, while Russia was the second largest fur consumer market. With the decline of Russian economic market, the consumption of fur in the whole country has declined a lot. It can be said that it was 100% at the beginning, but now it has dropped to 20%. In a short period of time, the supply of raw materials in the world exceeds the demand.

In the fur city of Suning County, Hebei Province, merchants told reporters that although it has not entered the peak season of ready-made clothing sales, according to the current momentum, this year's situation will not be too bad.

As the price of raw materials fell, the price of finished clothing also fell sharply. At present, when the price of fur clothing was relatively high, the price cut generally exceeded 60%. The merchant told the reporter that after the price was reduced, the sales volume increased significantly.

Wang Zhanjun, merchant of Huasi international fur city, Suning County, Hebei Province: it sold 300 pieces at the beginning, 500 pieces in 2014, and now more than 1000 pieces, more than 2000 pieces, or more than 3000 pieces.

This one is about 7000 yuan and 8000 yuan now, and more than 20000 yuan in 2013.

Industry insiders told reporters that although now known as the fur industry's trough, but from the clothing sales point of view, the domestic demand for fur clothing did not decline. With the decrease of fur inventory and the abandonment of farmers, the supply of fur will decrease. In the next two years, the supply and demand of fur will gradually balance and the price will rise. Fur industry will also significantly recover and usher in new development.