Overview of wool trade in Jan-Jul 07

14 Sep '07

3 min read

According to customs statistics, from January to July 2007, China's total imports of wool came to 202,000 tons, up 26.8 percent over the same period last year, worth of US $1.13 billion, an increase of 61 percent. Import average price was stood at around $5,619 per ton, hike of 27 percent.

Main characteristics in imports:

Imports were mainly in general trade. From January to July, China's wool imports in general trade were 126,000 tons, up 22.9 percent, accounting for 62.2 percent of the total wool imports for the same period. Imports in processing trade were 42,000 tons, up 19.2 percent, accounting for 21 percent.

Imports were mainly from Australia. During the period, China's wool imports from Australia were 128,000 tons, up 20.3 percent, accounting for 63.5 percent of total wool imports in the same period. Imports from New Zealand were 22,000 tons, down 1.5 percent. Imports from the EU were 14,000 tons, an increase of 90.7 percent.

State-owned enterprises were leading importers. From January to July, state-owned enterprises imported 86,000 tons, up 30.3 percent, accounting for 42.6 percent of total imports in the same period. Foreign-invested enterprises imported 64,000 tons, up 20 percent, accounting for 31.8 percent. Imports by the two groups of enterprises together accounted for 74.4 percent of total imports in the same period.

Main reasons for the hike in volume and price:

Firstly, domestic wool production could not meet the growing demand of wool processing industry. At present, China's wool processing capacity has reached more than 40 million tons (cleaned wool), representing more than one third of global output. The primary production and processing capacity of wash hair, wool tops, and wool yarn have been the largest in the world. But China's annual production of home produced wool is just over 10 million tons; all the remaining supply has to rely on imports. Along with the rapid development of textile industry, China's demand for wool imports is increasing.

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