From the beginning of this year to September, thousands of fur companies in our country have closed down. Fur, which has always been called “soft gold”, cannot be sold at a high price this year. What’s going on in the fur industry?
1 The price of fur in Hebei has dropped year after year, and you lose 80 yuan if you sell one fur
Suning County in Hebei Province is the largest fur trading center in the country, with a maximum of nearly 500,000 furs traded in a day. However, due to the impact of the epidemic this year, both transaction volume and transaction value have dropped sharply, with only a few hundred thousand furs being traded every day.
The Shangcun Fur Trading Market, located in Suning County, Hebei Province, is one of the seven major fur markets in my country. Since the epidemic this year, the entire market has seemed a little deserted. August and September have always been the traditional peak seasons for fur trading, but now they are only lively during the monthly market days.
Wholesalers told reporters that since 2013, fur prices have plummeted. From 2015 to 2019, the price of fur rebounded slightly. However, this year’s epidemic has brought the slightly improved industry back to the freezing point. Since many stores import furs from abroad through auctions, and the sales markets are mainly high-latitude countries, such as Russia, Norway and Finland, the stagnation of foreign trade has greatly affected sales.
Mr. Lu, a wholesaler at the Jingnan International Fur Trading Market in Shangcun, Suning County, Hebei: This fox skin sold for 1,000 yuan, 2016 When the market was good last year, one piece sold for about 1,500 yuan. When it was sold in September the year before last, it cost 1,080 yuan. According to the current price, the price is a little bit higher.
The sale of fur is not a matter of buying and selling immediately. Most wholesalers received the goods last year. Affected by the epidemic, the price of fur this year is not ideal, but in order to collect funds, And had to bear the pain of selling at a loss. Wholesalers often use gestures to negotiate prices. Each pelt has different prices due to differences in quality and size.
Industry insiders told reporters that although the demand for fur has gradually increased in autumn and winter, as export sales are currently almost stagnant, wholesalers can only rely on the domestic market. Supply still exceeds demand.
Li Jing, general manager of Jingnan International Fur Trading Market in Shangcun, Suning County, Hebei: In the past, the annual turnover of the raw skin trading market The amount is around 4 billion yuan, but it has been affected by the epidemic this year. Now is the peak sales season, but this year’s peak sales season is relatively weak because the order volume has decreased, especially after the cancellation of export orders, the domestic sales order volume has not increased significantly.
2 Farmers lose 50 yuan when selling a raccoon dog, and breed improvement is trapped in a vicious circle
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Since 2013, the fur industry has gradually entered a cold winter. Although it has recovered slightly in recent years, this year’s epidemic has completely disrupted the industry’s recovery. At fur wholesalers, the purchase price is higher than the sales price, so many merchants have suspended the purchase of furs. What is the situation like for farmers?
Not far from the Fur Trading Center in Suning County, Hebei Province, is Zhang Tiecheng’s breeding farm. In 2003, Zhang Tiecheng, who was a fur wholesaler in Dalian, took a fancy to the high efficiency of fur farming and joined it.
Zhang Tiecheng told reporters that he currently has a total of 5,000 foxes and raccoons. Foxes can currently only be sold for about 300 yuan each, while the price of raccoon dogs is only 200 yuan.
Zhang Tiecheng, a raccoon dog farmer in Suning County, Hebei: Not counting labor, the current cost of raccoon dogs is about 200 yuan, and the additional labor is about 250 yuan. , the cost of fox is about 300 yuan, and now they are all losing money. A fox or raccoon loses about 50 yuan.
Due to low profits, the scale of local breeding has been decreasing year by year in recent years, and this situation does not only occur in Hebei. Data show that in 2019, the number of domestic mink skins was 11.69 million, a year-on-year decrease of 43.61%, and the number of fox skins was 14.43 million, a year-on-year decrease of 17.02%.
Zhang Tiecheng told reporters that when the market was good in the past few years, farmers would introduce high-quality varieties to breed foxes and raccoons, but Nowadays, breeding is not profitable, and most farmers adopt the method of self-breeding and self-raising, and this method makes it difficult to improve the quality of fur. The quality of domestic fur is lower than that of imported fur, and it is more difficult to sell foxes and other furs that have been painstakingly raised at a good price.
Industry insiders told reporters that due to differences in quality, fur processing companies are currently more willing to purchase foreign furs through auctions. Domestic farmers’ sales have further declined, creating a vicious cycle. At present, there is only one out of ten individual farmers in the country.
3 The price of fur clothing has dropped by 60% in 7 years, and future supply and demand may be affected.Gradually balancing
Fur, which was once a luxury product, is now in a bleak situation. What are the reasons behind the industry? With both farmers and wholesalers losing money, what happens to finished fur clothing?
The reporter learned during the interview that the decline in fur prices in recent years is mainly related to supply and demand. Due to the low threshold, a large number of farmers and wholesalers entered the fur industry in 2013 and 2015 when the profits were good. Supply far exceeds demand, causing prices to fall.
He Sucheng, Vice Chairman of Huasi Holdings: Originally, China was the world’s largest fur consumer market, and Russia was the second. In the large fur consumer market, with the decline of the Russian economic market, the entire fur consumption has dropped significantly. It can be said that it was originally 100%, but now it has dropped to 20%. In a short period of time, the supply of raw materials exceeded demand worldwide.
In the Fur City in Suning County, Hebei, merchants told reporters that although it has not yet entered the peak season for clothing sales, based on the current momentum, the situation this year will not be too bad. Difference.
Due to the drop in raw material prices, the price of finished clothing has also fallen sharply. At present, the price of fur clothing is generally reduced compared to its high point. More than 60%, merchants told reporters that after the price was reduced, sales increased significantly.
Wang Zhanjun, a merchant in Huasi International Fur City, Suning County, Hebei: He sold 300 pieces at the beginning, 500 pieces in 2014, and now he sells More than 1,000 pieces, more than 2,000 pieces, or more than 3,000 pieces, the price has been reduced and the sales volume has increased.
This piece is now about 7,000 yuan to 8,000 yuan, and in 2013 it was more than 20,000 yuan.
Industry insiders told reporters that although it is now called the trough period of the fur industry, judging from the sales volume of ready-made clothing, domestic demand for There is no decline in demand for fur clothing. With the reduction of fur stocks and the abandonment of fur farms by farmers, the supply of furs will decrease. In the next two years, fur supply and demand will gradually balance and prices will rebound. The fur industry will also recover significantly and usher in new developments.
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