[Market Observation] Let Prices Really Reflect The Value Of Wool.

Chen Lifen, chairman of Jiangsu Sunshine Group

Chen Lifen

In order to promote

About Australian wool, we have talked about the price most in the past year.

Since October 2010, wool prices have surged at an unimaginable speed.

The reasons are: first, the prices of textile raw materials such as cotton and chemical fiber are rising; two is the shortage of Australian wool supply; the recovery of European market has promoted the rise of wool prices in the auction market; three, the exchange rate of Australian dollar to the US dollar has broken through 1:1, pushing up the price of sheep wool in dollar terms.

As of the end of June this year, Australia's EMI price reached 1409 Australian cents, almost doubled compared with the beginning of 2009, while the EMI price in dollar terms reached 1514 cents, which is 3 times that of 2009.

This makes the Australian dollar price in the international market hit the highest in the past 20 years, and it is obvious that this has led to a rapid rise in the cost of production for the wool textile enterprises.

In the face of rising wool prices,

A direct consequence of the rise in fabric prices is to frighten away some customers.

For those who are first in cost, they will even abandon their woolen fabrics and buy non woolen products to reduce costs.

This forced us to seriously consider: in order to promote the healthy and orderly development of the wool industry, and to allow the wool textile enterprises to survive, what should our practitioners in the wool industry do?

For the market, the author thinks that we should try to make the price really reflect the value of wool, or let the price of wool return to reason.

It is undeniable that the price of wool has been too high for some time. This not only exceeds the endurance of the producers and the ultimate consumers, but also far exceeds the expectations of Australian herdsmen.

So, with the support of the high price, the herdsmen sold the almost sold wool.

We can see that wool prices continue to decline in the new auction year.

The information conveyed seems to test the author's view that the price of wool is in the right track of returning to its value.

For wool textile enterprises, it is necessary to fully reflect the price of wool.

That is to rely on continuous product innovation and technological innovation, and continuously improve the added value of wool fabric, thereby reflecting the value of wool.

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China, the world's largest wool consumer, faces the ups and downs of wool prices. What we can do is to face it positively and rationally.

It is foreseeable that the price of wool will remain volatile in the future, and supply, exchange rate and global economic situation will all affect the price of wool.

China's good economic development situation makes us confident in the wool market in the future and always does a good job in the wool industry.