Cashmere Prices Expected to Drop Further

Last winter, most cashmere knitwear plunged to around 200 yuan (US$24) a piece from some 1,000 yuan in previous years following a fall in the price of cashmere earlier that year.

A large stockpile of cashmere material at domestic millers and rising imports from neighboring cashmere suppliers, such as Mongolia, Russia, Iran and Afghanistan, have led to an oversupply of cashmere, the analysts said.

Currently, China's cashmere stockpile remains at more than 1,000 tons nationwide, while imports from Mongolia alone exceed 2,000 tons.