What Are The Factors Affecting The Global Wool Market?

Chairman of the Information Committee of the International Wool Textile Organization, Australian wool sales brokers and executive director of the National Committee, Chris Wilcox (Chris Wilcox), looks forward to 2016.

The market said that the wool market will have a bright side in 2016, but at the same time there are risks and uncertainties. The global wool market is expected to face five main problems:

First, the economic situation in Europe and the United States has improved.

Economic recovery will be beneficial to clothing retailing.

If the economy continues to improve in the autumn / winter of 2015, it will lay a solid foundation for the sale of wool garments, and it will also inspire.

Additional orders for 2016.

Because of the improvement of retail industry, we hope more wool clothing will be provided to consumers.

Two, the supply of raw wool is reduced, especially for the use of raw wool.

Raw materials for wool.

In 2016, the supply of raw wool in Australia will be lower than that in 2015.

Australian wool production in 2015/2016 is expected to be the lowest since 1924/1925, and the stock prices of herdsmen are also low.

Other countries, such as South Africa, Uruguay and Argentina, will also lose their wool production for clothing.

The low supply will support the strong price of wool.

The three is exchange rate fluctuation.

In terms of foreign exchange market, the US dollar will continue to maintain a strong momentum relative to Australia, New Zealand and Rand.

To a certain extent, it is mainly because the Federal Reserve has begun to raise interest rates, while Australia, New Zealand and South Africa are expected to keep low interest rates.

The strong US dollar will restrain the rise in the US dollar price of wool.

However, in the past, exchange rate forecasts often deviate.

The four is the pformation of China's economy.

In the long run, China's economic pformation is very good.

Nevertheless, for China's wool textile industry, there are certain risks and problems in the process of pformation.

Five, the demand for Chinese double faced overcoats is strong.

Over the past 9 months, China's double-sided overcoat has been booming. Next, it depends on whether retail sales in China are as good as expected.

Jo Dawson Dawson, a British Dawson & Sons (wool) Co. Ltd., predicted that there would be no big change in the price drop of Merino hair 17 micron ~21 micron in CEO, because the demand for wool was getting worse and worse, even lower than the lowest level in history, which would suppress the price of wool in the Jo Dawson.

He said that only when the price is low, Chinese buyers can buy demand, but such a low price can not last long.

In the future, due to the bad weather in Australia, the output of wool will further shrink, and the fine fine wool with low grade will dominate, while the output of medium branch and high quality fine wool is in short supply.

Jo Dawson believes that the Australian dollar exchange rate in 2016 will be less than 0.72, supporting the price of wool.