Mink Prices Reach New Peaks,
Offering at NAFA Sold Out,
China & Russia Biggest Buyers,
Wild Furs also Set Records,
U.S. Consumer Confidence Up.


INTERNATIONAL PRESSURE ON SUPPLIES OF BOTH RANCHED AND WILD FURS CONTINUED TO MOUNT LAST WEEK, PUSHING PRICES OF MINK AND OTHER ITEMS TO NEW PEAKS. The opening sale of the season at North American Fur Auctions drew a record attendance of about 450 buyers among the more than 1,000 who gathered there for the occasion, including ranchers and other members of the trade and ancillary services. As was the case the previous week at Kopenhagen Fur, mink prices were up sharply over last year’s comparable offering and well ahead of the record levels reached three years ago. The males at $94.14 and the females at $62.82 made an overall average of $78.46.

THE LATEST ADVANCES, AS WELL AS THE ANTICIPATION OF SIMILAR OR FURTHER INCREASES AT THE AMERICAN LEGEND OPENER IN TWO WEEKS, WERE REPORTED TO HAVE CAUSED SOME HASTY REPRICING AT THE HONG KONG FAIR OVER THE WEEKEND. But while manufacturers may have been able to IN THIS ISSUE: recalculate their costs on the basis of what they paid in Copenhagen, they hadn’t had be able to quote firm prices on those items until after the Legend sale. However, the vast majority of Hong Kong/China’s production is *China, Russia Biggest Buyers in Danish and other mink, including domestic pelts. The fair opened on Friday, as we went *Wild Furs also Set Records
to press. Preliminary reports indicated the attendance could exceed last year’s 5,575 *U.S. Consumer Confidence Up and that Russia would again be the largest foreign buyer. Domestic retailers, the main
customers of the Chinese manufacturers, don’t usually place their orders until April or May. Many are owned or controlled by the big manufacturers, so they perceive no need to buy early.


Regards, Redfox

Hong Kong Fair a Powerhouse,
Attendance Rises Sharply,
Sales Nearly Double Last Year,
Higher Prices No Obstacle,
U.S. Sales Rose 3.1% in 2010

AIDED BY AN INCREASING FUR PRESENCE IN THE FASHION PICTURE AND A COLD WINTER THAT RESULTED IN DEEP REDUCTIONS IN RETAILERS’ INVENTORIES, BUSINESS AT THE ANNUAL HONG KONG FAIR NEARLY DOUBLED LAST YEAR’S STRONG SHOWING. Exhibitors at the four-day event that ended last week were described as thunderstruck by both the size of the international crowd and their eagerness to place solid orders for the next season in the face of sharply higher prices. The immediate impression was that the record-breaking skin prices are being accepted – by the trade, at least – and that the upcoming fairs elsewhere are likely to find a similar response.

MANY OF THE WORLD’S MAJOR ECONOMIES ARE STILL STRUGGLING BACK TO SOME KIND OF NORMALCY BUT, IF THE FUR BUSINESS SERVES AS ANY KIND OF BAROMETER, FULL RECOVERY MAY NOT BE THAT FAR AWAY. This year’s edition attracted a total of 7,200 buyers from around the world, an increase of 29% over last year’s event. Those from the Chinese mainland represented the largest contingent at over one-third of the total, up more than 30% over last year and mirroring the sharp climb in that country’s economy and its people’s spending power. Total on-the-spot orders placed at the fair amounted to U.S. $233 million, 75% more than the immediate business booked last year. On top of that, the tentative orders that are to be confirmed after buyers return home and review them amounted to another $263,182,500, bringing total sales to $496,594,716, compared with $283,768,409 last year.

Regards, Redfox

Mink Up Again at Legend Sale,
Fur Harvesters Prices also Rise ,
U.S. Imports Continue Upward,

MINK PRICES CONTINUED TO ADVANCE TO NEW PEAKS LAST WEEK, MAINLY REFLECTING THE STRONG ROLE OF FURS IN THE OVERALL FASHION PICTURE, BUT ALSO ANOTHER COLD WINTER THAT HAS INCREASED THE TRADE’S OPEN-TO-BUY POSITION INTERNATIONALLY. The season’s opening sale at American Legend drew a packed room and spirited competition that pushed prices as much as 10% above recent record levels achieved elsewhere. Moreover, anticipation of those increases contributed to the strength and high turnover of wild furs at the preceding Fur Harvesters sale at Legend’s facility in Seattle.

THE LATEST ADVANCES ARE CONSIDERED VIRTUALLY CERTAIN TO CAUSE CHINESE AND OTHER MANUFACTURERS TO READJUST THEIR WHOLESALE PRICES, AT LEAST FOR GARMENTS CONSISTING OF NORTH AMERICAN MINK. Some were already done during the Hong Kong fair as a result of the advances at North American Fur Auctions. But with two more major offerings coming up quickly – this week in Helsinki and two weeks later in Copenhagen – and with those prices expected to move up following the lead by both North American houses, manufacturers may have to do their next recalculations across the board. So far, this year’s higher garment prices have found acceptance by retailers internationally, as indicated by the excellent results at the major fairs in Hong Kong and Milan. Of the remaining fairs, the two in Greece are expected to be dominated by Russians and the Montreal event by Americans, only some of whom have placed opening orders.

Regards, Redfox

Here is the lates on the trade:

Mink Prices Up Again in Helsinki ,
Other Furs also Show Gains ,
Season Pelt Prices Now Seen Set,
New Garment Hikes Expected

CONTINUED STRONG INTERNATIONAL DEMAND PUSHED MINK AND FOX PRICES TO NEW RECORD LEVELS AT FINNISH FUR SALES LAST WEEK AND ALSO RESULTED IN SIGNIFICANT INCREASES FOR OTHER FURS. . Attendance at the auction, at over 700, also set a new record as it exemplified the still-growing needs of the huge Chinese market as well as those of Russia and the other major markets. The company calculated that mink prices rose 5% to 15% in euros, the currency in which it sells, but also 20% in dollar terms. But while the dollar has eased in the past month, the euro has strengthened by about 5%. Bluefox prices advanced 30% over December levels.

HONG KONG/CHINA AGAIN DOMINATED THE BUYING, AS IT HAS AT VIRTUALLY ALL THE AUCTIONS IN RECENT YEARS ON BOTH SIDES OF THE ATLANTIC. Considering the rising inflation rate that Chinese consumers have recently been dealing with in general, the higher prices for mink and other furs evidently are expected to pose no special problem in that country. Food prices alone rose 11% in February and the producer price index – a measure of inflation at the wholesale level – rose 7.2%, the biggest increase since October, 2008. Russia also was a heavy buyer, both directly and through its Greek and Italian suppliers. As was Korea, which usually concentrates on better- quality females and is now more active at the Finnish sales due to the Finns’ increased production of velvet types.

Regards, Redfox

Trade Heading for Record Year,
Mink, Fox Prices at New Peaks,
Retail Prices Could Be Hurdle,
Skin Shortages Looming?

THE INTERNATIONAL FUR TRADE IS EXPERIENCING THE HOTTEST DEMAND FOR MINK, FOX AND OTHER PELTS THAT MARKET VETERANS CAN REMEMBER – AND WATCHING SKIN PRICES REACH NEW PEAKS AT EACH SUCCEEDING AUCTION. This, in the face of national economies that haven’t fully recovered from the worldwide financial meltdown of 2008. What could be described as an animal activist’s worst nightmare is developing into a banner year for fur farmers, wild fur collectors, dealers and, especially, the auction houses, which appear to be heading for the most profitable year in their history.

AT THIS POINT, THERE IS SOME TALK ABOUT POSSIBLE SHORTAGES LOOMING IN THIS YEAR’S SUPPLY OF MINK. There have been spot shortages in the past, but only in certain minor categories and usually developing at the tail end of the retail season, when last-minute substitutions were still feasible. The current belief – by some – is that this season’s supply could be exhausted well before the end of the year and on a much wider scale. China’s pressure at the auctions is believed to reflect not only a projection of its known needs, but also to prevent shutdowns of its huge factories and worker layoffs for lack of skins. Such concern about possible shortages among some retailers at the Hong Kong fair in February caused them not only to confirm their orders on the spot, but also to specify earlier delivery than in previous years. Some who used to specify October-November delivery have changed to September-October and even earlier

Regards, REDFOX

Kopenhagen Prices Seen Higher,
NAFFEM Expecting Bigger Crowd,
World Fur Sales Rose in 2010

WHOLESALE PRICES HAVE INCREASED SINCE THE HONG KONG FAIR AND INDICATIONS ARE THEY WILL CONTINUE TO RISE FOLLOWING THIS WEEK’S AUCTION IN COPENHAGEN – EVEN IF MINK PRICES MERELY REMAIN FIRM. The fact is that manufacturers’ prices have been inching up steadily on new orders, reflecting the increases at the auction level. At this juncture, they’re watching this sale to see how much more they should raise. The Kopenhagen event, which got under way as we went to press, was reporting a record attendance of more than 600. Judging from the high percentage of Hong Kong/Chinese there, the expectation was that prices would at least hold firm to recent levels, but would more likely rise further. As previously reported, the big Chinese manufacturers are not only covering their projected needs but, fearing skin shortages before the end of the year, may also be stockpiling them to avoid having to shut down and lay off workers for lack of materials. To which Kopenhagen sales director Kenneth Loberg adds, with a clearance of 96% in February – 10% better than last year – expectations for the auction are great.

EARLY INDICATIONS ARE THERE WILL BE MORE AMERICANS AT THIS YEAR’S NORTH AMERICAN FUR & FASHION EXPOSITION IN MONTREAL (NAFFEM). According to the Canadian Fur Trade Development Institute, the fair’s producer, pre-registrations have been running more than 20% ahead of last year at this time, including retailers who have not been there for several years. Again, it has encouraged early registration by eliminating the $35 fee for those who register before April 15. Space at the fair, May 1-3 at Place Bonaventure, is now fully booked with a total of 91 exhibitors. A new feature this year will be a luncheon seminar on May 3 titled “Power Up Your Business”. Speakers include Keith Kaplan, executive director of the Fur Information Council of America, on the new Fur Insiders website; fashion blogger Tony Jordan, and Alan Herscovici, executive director of the Fur Council of Canada, outlining a retailer photo bank, ad program, billboards, “Fur Is Green” and other tools for success. There also will be a fashion trends seminar led by marketing consultant Teresa Eloy

Regards, Redfox