European Debt Crisis Affects International Wool Market

The global market suffered from "black May", and Greece's political turmoil pushed the risk assets of global stock markets, commodities and euros to the lowest level in many months.

China once again lowered the deposit reserve ratio of deposit financial institutions by 0.5 percentage points, and the global economic growth slowed down.

Under adverse circumstances, wool was not spared.

However, the supply of global wool will be extremely tight in the future, and the possibility of a further decline may not be great.

Australian wool Market

In May, the economy was not strong enough, the gross price and the exchange rate of yin and down made many enterprises lose confidence.

The Greek crisis led to Europe.

The fine hair fell sharply, but the hybrid wool remained strong.

Especially in the third week auction, wool prices plummeted and the proportion of racket increased. The eastern Australian market index hit the lowest price level since January 2011.

As of May 25th, the eastern Australian market index closed at 1104 Australian dollars / kg, while the US gold price closed at 1076 cents / kg, down 5.2% and 2.7% respectively compared with the end of last month.

At present, China is accelerating the realization of a soft landing, the Australian economy is also slowing down development, coupled with the worsening situation in Spain and Greece, investors worry that the European debt crisis will continue to spread, and the dollar will become a safe haven again.

The Aussie dollar suffered a setback against the US dollar, falling for the first time in five months to below 1: 1, or even hitting the lowest point, maintaining its oscillation between 0.9700~0.9800.

As of May 25th, Australia

The supply was 148559 packs, with a turnover of 123241 packages, with a turnover rate of 82.9%.

The top five buyers of wool are: (AO) Viterra wool company buys 11469 bales of wool; Fox Leigh buys 10571 bales of wool; Tek wool buys 9492 packets of wool; lomply (Australia) buys 9137 wool; and modi Anau buys 3422 packets of wool.

In May, due to the early listing of New Zealand wool, the supply was greatly reduced.

In the middle of the year, orders for carpet hair from Asia, Australia and New Zealand increased slightly, demand rebounded, market prices were stable, and rebounded sharply at the end of the month.

As of May 24th, the price of lamb, fine count crossbred wool and coarse crossbred wool rose all the way, and only one auction was made for the Chinese branches, with an average price of 940 cents per kilogram.

The average index of fine crossbred wool was 535 new cent / kg net hair (+6.2%); the average index of coarse crossbred wool was 453 new cent / kg net wool (+5.1%); the average index of lamb wool was 508 new cent / kg net wool (+3.9%).

In May, the popularity of the dollar and the worries over the eurozone were dragged down by the New Zealand dollar / dollar exchange rate, which touched nearly four and a half months low.

But the decline was limited by stronger commodity prices and the advantage of the New Zealand dollar relative to the US dollar. The exchange rate remained at 0.7510 at the end of the month.

As of May 24th, the total supply of New Zealand wool market was 33179 packs, with a turnover rate of 75.8%.

The first five buyers of wool were: New Zealand International Wool Company bought 7220 packages; Matthew bought 6400 bales; Forman bought 3400 bags; JSB bought 2050 packages; Dawson wool company bought 2010 bags.

There were two auctions in South Africa's wool market this month, with a total supply of 15986 kg, with a turnover rate of 94.6%.

In early April, the Cape wool Merino index fell to its 100 RAND / kg level for the first time since January, due to a reduction in orders from China and Europe.

In late May, the eurozone crisis intensified, and Cape wool Merino index continued to fall, closing at 95.69 RAND / kg net hair, up 12.9% over the same period last year.

The fifth summer auction of mohair in South Africa was held in Port Elizabeth this month, with a supply of 69497 kg, with a turnover rate of 97%.

The market continued to maintain an upward trend, with the average market index breaking 100, closing at 100.35 RAND / kg, up 9% from the beginning of this quarter.

Buyers still favor good quality mohair.

As the supply of the remaining summer Mohair is decreasing, the competition for buyers is still fierce, even though European uncertainties remain, ensuring inventory to meet the demand for mohair.

Viewpoint two domestic sales are not booming, export reduction

In May, international wool prices continued to fall, bringing pressure to many processing enterprises.

The export crisis has been shrinking. The economic crisis in Europe has sharply reduced market purchases. In the channel of downward prices, brand enterprises have accelerated consumption of inventories.

At present, the downstream demand is sluggish, export orders are decreasing and confidence is insufficient, so that sales in May are not satisfactory.

Domestic processing enterprises are squeezing production.

With the poor export situation, some export oriented enterprises are partly sold domestically.

In 2012 1~4 months, China imported 88 thousand and 100 tons of raw wool.

3, the import volume increased significantly in April compared with that in one or two months.

Since the factory started after the Spring Festival in February, the stock in early stage has basically run out.

In addition, when the gross price was still hovering at the time, most people thought the possibility of falling was not large enough, so that inventory had to be replenish to maintain production.

In other words, most of the goods shipped to Hong Kong in three or four months are high priced wool in February.

Faced with a downward trend in prices, it is really "pressure mountain".

Businessmen look forward to the arrival of the 2012 London Olympic Games, which can promote consumption, drive the European economy and drive demand.