Australia's Wool Market Is Promising.

When it comes to the price of Australian wool, "China" is the country most commonly mentioned. Australia wool The latest market report of AWI shows that China will become a super economic power this year. The Chinese government intends to carry out a major reform project in 2014 to raise the rate of return on capital so as to ensure that the rise in productivity is enough to offset the adverse consequences of the decline in labour force. If the reform is successful, this will push China to become a middle-income country in the next ten years.

It is predicted that Australian wool will be compared to 2013 this year. yield Chinese consumers will also spend more than 400 billion dollars on wool and wool products, which is undoubtedly good news for Australian wool producers.

But Wang Qiang, Chinese project manager of the Australian wool inspection agency, said that the European economic recovery will also have a significant impact on the wool market in 2014. "Orders from the European Union are being issued, and compared with last year, the speed and volume of orders have increased significantly this year," he said. "But the current situation in China is very complicated."

Mr. Wang pointed out that although the topic of textile industry is constantly increasing, the number of processing enterprises is decreasing or even bankrupt, but things are not so simple. "China's textile industry is stabilizing, which means that the weaker Yu Qiang and the weaker are stronger," he said. "Despite the decrease in the number of enterprises, China's textile industry is still very strong in terms of productivity and technology development."

Although China's economic growth has slowed down in the past 12 months, Mr. Wang is still confident. He argues that China's economy will not recede. He also points out that Europe's economic situation is the most noteworthy one. He confidently said that 2014 would be a good year for Australia's gross price. "I say so because. In 2013, China's economic growth slowed down and the European market was muddy and difficult. But even so, the price of wool is still 5% higher than in previous years, "he said." the latest production forecast shows that Australian wool production will decline. On the one hand, our wool production is reduced. On the other hand, we have witnessed the improvement of market conditions. I am sure. The price of wool will go up to a new high in 2014.

Adviser to the Australian wool industry Secretariat (AWIS) Peter Morgan Although the Chinese market is very important for Australian wool, it is not the whole market, he said. He said that 78% of Australian wool exports to the Chinese market would not increase again. "It's hard for China to import more wool, because imports from other countries are increasing year by year," Peter Morgan said. "India is in the second place and its wool consumption is growing. India's purchasing power has been greatly affected by the Australian dollar exchange rate. The fall in exchange rate in the past 12 months has affected the wool consumption market. We also notice that wool is flowing to Czechoslovakia, and Egypt has increased the import of wool. It is also important to pay attention to the markets of other countries, because we want them to continue buying to maintain a certain competitive pressure.

Mr. Morgan believes that although China's economic situation will be good this year, the rising labor costs will still have a negative impact on its economic performance. "AWI is trying to promote the wool processing industry in Vietnam and Bangladesh. For this reason, they are doing well."

On the whole, Mr. Morgan is very optimistic. He believes that for the Australian wool market, 2014 will be a bumper harvest year. "The output of wool is very stable and can maintain the balance of supply and demand," he said. "Last year, the price of wool was quite strong and stabilized at 1000 Australian cents per kilogram. That's good news. You know that compared with the dollar price. I don't know who else will see the market this year.