Uncertain Factors Of Wool Price Trend In 2012

Fluctuating, unpredictable, difficult to grasp, exciting and challenging - that's all.

The Economist Intelligence Unit (EIU) is a UK based economic intelligence provider.

According to EIU, the average selling price of wool garments in 2011/12 (Merino type) should be around 12.32 Australian dollars, and will remain above 10 Australian dollars until the end of 2013.

Like the AWI report, the Australian agricultural resources Technology Bureau (ABARES) also predicts that the Australian Merino wool market index will remain at around 12 Australian dollars.

But we all know wool.

The wool exporters we know are optimistic about the demand for wool and believe that the overall demand will increase.

Martin Curtis, a British Curtis wool direct purchase company, commented that we expect the UK and US economy to gradually improve in 2012.

The economy of China and the Far East will continue to grow at a slightly below two digit level, and the European economy will experience a series of fluctuations.

The output of British wool, New Zealand wool and Norway wool fell sharply, as these countries were the main producers of quality crossbred wool, which led to a shortage of wool production.

Mr. Curtis believes that the supply of wool products will take a long time to increase. With the continuous growth of the world population, the demand for food, clothing and shelter will also increase correspondingly.

Consumers seem to be more and more supportive of wool.

Mr. Curtis claimed that part of the reason for this surge of "close to wool" was due to wool movement.

Segard Masurel, a French company Olivier Segard, believes that the demand for wool for clothing in Europe is slowing down.

Having said that, there seems to be more wool in the retail market than before.

This is probably the reason why wool prices have not fallen sharply in recent months.

Moreover, contrary to the situation at the end of 2008, there is not much stock in wool.

Since the basic demand for wool has always existed, raw wool and wool are primarily processed.

Carpet and indoor wool products are slightly different.

Markets in Europe, the United States, Australia and New Zealand are very calm.

The demand for wool is decreasing, and the alternative fiber is getting more and more attention, Mr. Segard said.

Mr. Segard pointed out that because of China's growing demand, the price of wool has so far remained at the market level, but we really don't know how long it will last.

The uncertainty of the global economy will eventually affect the demand of the Chinese market.

However, when the overall confidence is restored, we will see a healthy development of the hybrid wool market.

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Mr. Segard believes that the long-term demand for wool will continue, but from other fibers.

Mr. Segard is a member of the Executive Committee of the International Wool Textile Organization (IWTO). He has witnessed the dedication of IWTO to the global wool industry and its unremitting efforts to coordinate the development of the wool textile industry of the member states.

However, there is no free lunch in the world. He said IWTO sincerely welcomes external financial assistance.

Some political initiatives of the wool producing countries in the southern hemisphere are also conducive to the whole wool spinning industry.

The news of China's steady market demand was approved by the New Zealand wool Bureau.

Mr. AlRoss has just concluded his visit to China. He said that the supply of Chinese carpet yarn is in short supply.

Most of this demand comes from China's domestic market, because its exports of carpets are less than 10%.

Because wool carpet is sold as luxury goods, the demand for luxury goods in China has not been affected by the slow economic development and the financial crisis in Europe and the United States.

Mr. AlRoss said this demand is very large, and many manufacturers even turn from hand weaving to producing carpet yarn to meet market demand.

"The investment in new equipment is considerable, and the latest technology from Italy, Belgium and the United States is adopted. Therefore, the quality of finished products has been greatly improved."

"New Zealand wool is positioned as a high-end raw material for woven carpet, and the continuous growth of China's luxury goods industry, hotel industry and recent housing industry will help stimulate the growth of wool demand in New Zealand," Mr. AlRoss said.

So far, the Chinese market has accounted for 48% of New Zealand's wool exports this year.

Lanas Trinidad, the largest strip maker in La GUI, is optimistic that the market will become more rational next year.

Pedro Otegui said that in 2011/2012, Uruguay will start with "zero inventory".

"Wool producers, processors or exporters will not have stocks. Other wool producing countries have not carried out their inventory. The wool buyers have been on the sidelines for the past few months, and of course there is not much stock to speak of."

"The wool output of this year is almost the same as that of last year," he said. "In view of the good weather conditions this year, the quality of wool is expected to improve."

The proportion of Uruguay's exports to China has dropped from 47/52% in the past 32.9% to 21200 tons.

China is still the main exporter of Uruguay wool tops.

Italy and Germany accounted for 33% of the gross exports to China, and exports to other European countries increased.

This ratio has reached 50%, which has not been seen for many years.