Home / Knowledge / News / Textiles / China impacted by high wool prices
China impacted by high wool prices
20
Jun '11
The woolen industry in Western Australia (WA) is passing through a critical phase due to the rising prices of Australian wool. In the last few months, the prices have risen so sharply, that it is becoming difficult to sell the end-products - clothing, according to Chinese buyers of Australian wool.

A small group from China that visited WA to assess the state of its woolen industry first-hand said, “Chinese firms are already selling at a minimal profit. Hence, if they procure WA wool at today's market prices and subsequently if there is a drastic drop in prices, then several manufacturing units in China would have to be closed as the unit owners would not be able to bear such a loss.”

The Chinese group, which included two Chinese mill owners and a fabric maker, termed the present price situation as dangerous. While the problem has been there for the past two years, it is only now that it is becoming more evident. The scarcity of wool is actually, now becoming very apparent, according to this group.

The group was surprised to find that owners of sheep farms like Oakover Merino are no longer withholding wool for five or more years before they sell, as they used to do earlier.
It was also found by the group that the WA shepherds are no longer increasing their sheep flock numbers due to variations in seasonal demand for wool and price constraints.

The group felt that the severity of the problem of the shortage of wool and the associated high prices is yet to be fully felt in China. It may take some more time to feel the effects of the short supply of wool, according to Mal Edinger, Director, Westcoast Wools.

At present, Chinese companies have enough stock to sell as they are mixing their old stock with the new one. In fact, the entire process chain from procuring of greasy wool to manufacturing of garments takes around eight to ten months. So, the shortage of supply in wool is not immediately felt by the end-product sellers.

The Chinese clothing makers, however, are now beginning to realize the need to refine their markets as well as the importance of branding their products. Hence, they are now developing their own branding, while aiming at the high-end markets.

In other words, the Chinese have found a way to deal with the sharp price rise, i.e. by branding their goods and selling in high-end markets. So, the price does not matter for the Chinese as long as they can sell the products for profits.

Fibre2fashion News Desk - India


Must ReadView All

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

Courtesy: 2XU

Apparel/Garments | On 15th Dec 2017

L Catterton Asia announces JV of GXG and 2XU

L Catterton Asia, the Asian unit of the largest and most global...

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Interviews View All

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search