Australian Wool Makes People Wavering And Wait-And-See In The Market.
Australia stops for a week because of Easter holidays.
It seems that
wool
Everything in the industry as usual, still in accordance with its own unique laws in operation.
However, the trees are quiet and the wind is not strong. I started to go back to China last week to investigate many domestic enterprises.
Generally speaking, the situation is not very optimistic.
The problem lies in the sale of wool products.
The situation of receiving export orders in the first half of this year has changed greatly this year.
In Europe and the United States, orders for wool textile products from China have dropped considerably this year due to the economic recession.
This situation has caused many enterprises in China to be badly underemployed.
It is now in mid April, and the final result of the European and American orders that people are waiting for is disappointing.
Starting from the second half of the year, the focus of domestic wool textile enterprises will be the sales in the domestic market.
What is the expected situation? It seems too early to conclude.
So much foreshadowing is actually to illustrate a question, what is the trend of gross price? Today's woolen textile industry, especially in the primary processing field, is described as an "idiom" by using an idiom.
The price of Australian wool is decreasing gradually in the weeks before Easter, especially the super fine wool and fine wool are coming down the stairs every day. In addition, the Aussie dollar is decreasing in the past few weeks, and the trend of the Australian dollar's decline in the coming period is more and more obvious. In addition, the number of wool coming to the market next week will be as high as 57 thousand packages.
A price war seems inevitable.
As a result of these signs, many Chinese wool trading companies and manufacturers began to wait and see, stop purchasing and hope that the Australian wool market had better come to "one sink and a thousand li".
Such mentality is spreading rapidly in the industry.
Not really.
Wool textile industry
The gospel.
Industry wait-and-see causes uncertainty in the market, and the uncertainty of the market in turn makes people wait and see.
People who have entered the wool industry for more than 10 years can still remember that when the market falls, the default situation in the industry can be overwhelming.
The injury is ultimately the enterprise.
However, will there be any confusion in the market? Will the price war be completely out of control? I personally think not.
First of all, the shortage of wool raw materials is still very serious.
Despite the sharp drop in demand, the wool industry is still "hungry".
According to the latest figures released by the Australian Bureau of statistics, although the number of Chinese Australian fur purchases still accounts for over 75% of the world's total purchases, the gross Australian wool purchases so far have been reduced by more than 10% compared with the same period last year. That is to say, so far this year, China has purchased less than more than 30 thousand tons of Australian wool (according to the annual calculation of Australian wool since last July - now).
Based on this situation, the price of wool may fluctuate in a short time, but from the long-term development, the price of Australian wool will not go down.
At present, the market index (21 microns as an example) fluctuates between 1300-1350.
But this index is dire.
I still believe that the price of Australian wool will stay at a high price for quite some time.
Isn't it? Australia's next year's output growth seems to be minimal.
The possibility of increasing wool production in the short run is almost nonexistent.
Although China's market is weak,
Australian wool
The market targeted is the world.
The East is not bright, the west is bright.
The country that needs Australian wool is not just China.
These countries are gradually recovering.
The trend of Australian wool prices has to be vigilant.
I have said in the past that the change of the Australian dollar depends on Australia's own economy. Another major factor in the US economy and the European Union's economy is China's own economic development.
At present, the United States and the European Union are still hovering at a low level, and the Australian economy is also at risk of instability.
Especially in the commercial field.
The number of China's economic growth announced since the two sessions this year has had to make Australia nervous.
The sharp decline in mining stocks indicates that people are worried about Australia's future economic trend.
In this case, Australia's currency began to suffer.
At present, compared with the US dollar, Australia is gradually losing ground.
Thus, Australia's currency will linger for a longer time.
Of course, this is undoubtedly a good news for Chinese manufacturers in accordance with the US dollar settlement.
From now on, people's vision and mentality should be liberalized.
Don't neglect the deep understanding of the market because of the momentary changes in the market.
Anyway, for Australia.
Wool price
Next week's performance must not be too early in the development of long-term conclusions.
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