Papz

The Professional Association of Pearls, Zhejiang

Freshwater pearl association to stockpile lower-end products.

Freshwater pearl association to stockpile lower-end products

24/08/2004

To further enhance the image of Chinese freshwater pearls in the international market and restore trade confidence, a major pearl trade body has passed a resolution on commencing stockpiling lower-end freshwater pearls.
The Professional Association of Pearls, Zhejiang (Papz) will stockpile pearls below US$12 a kilogram, as the market has been flooded with low-quality freshwater pearls over the past few years and prices have been constantly falling. The executive committee of Papz believes that by stockpiling lower-end goods the association will be able to substantially reduce the availability of these goods on the market, thus stabilizing prices and restoring trade confidence, Papz chairman, Zhan Wei Jian, said.
"Based on the operations of individual enterprises, they can submit lower-end products of certain quantities for centralized stockpiling at Papz. The stockpiled products will still belong to the individual enterprises and they will receive a capital return as a result of the stockpiling. The Papz executive committee will hold further discussions on the handling of the stockpiled pearls and a resolution is likely to be passed with support from two-thirds of the committee members. We will discuss the collection method for next year at the annual general meeting to be held in January 2005."Papz began distributing notifications inviting members to send their products in for stockpiling and give estimates of quantities in June. "The members are welcome to stockpile lower-end pearls of 7, 10, 15, 18 or 40 tonnes. The stockpile at Papz had reached 25 tonnes by the end of June and is expected to be 300 tonnes in December." Despite the rapid developments seen in the freshwater pearl sector in China, the share of high-quality pearls has remained at around 20 percent of overall production. Of the medium- and lower-quality pearls accounting for the remaining 80 percent of total output, 30 percent are consumed by the arts and crafts, skin care and health food and product sectors and the remaining 70 percent are fashioned into jewellery and sold in the domestic market. This has undermined the image of freshwater pearls in the international market and they are considered inferior to South Sea and Tahitian pearls, according to Mr Zhan. Moreover, some consumers seem to have lost confidence in even higher-end freshwater pearl jewellery, which will have long-lasting impact on the entire sector should it take no action. Despite the rapid developments seen in the freshwater pearl sector in China, the share of high-quality pearls has remained at around 20 percent of overall production. Of the medium- and lower-quality pearls accounting for the remaining 80 percent of total output, 30 percent are consumed by the arts and crafts, skin care and health food and product sectors and the remaining 70 percent are fashioned into jewellery and sold in the domestic market. This has undermined the image of freshwater pearls in the international market and they are considered inferior to South Sea and Tahitian pearls, according to Mr Zhan. Moreover, some consumers seem to have lost confidence in even higher-end freshwater pearl jewellery, which will have long-lasting impact on the entire sector should it take no action. Papz was established in April 2004. Its membership consists of pearl suppliers in Zhuji in Zhejiang.