China's Wool Imports Drop

September 15, 2006 - According to Fiber2Fashion, China's National Bureau of Statistics report that China's wool imports were down marginally in June 2006 compared with June 2005.

The decline continued a moderate downward trend since April 2006, mostly a result of caution on the part of Chinese wool processors with an eye on higher wool prices (in US$ terms). Some processors have, however, been forced to purchase raw wool supplies as stocks dwindled, regardless of price.

Despite the marginal decline in June, volumes lifted substantially to the highest January to June period on record. Australia, New Zealand and Uruguay remained the top three suppliers of raw and semi-processed wool during the six-month period.

Over the first half of 2006, there were significant gains in the volume of scoured wool, noils, greasy wool and wool top imported, with greasy wool continuing as the main form of wool imported. Although volumes of greasy wool imports rose compared with the same period in 2005, its relative share of all wool imported dropped year-on-year.

Additionally, it was reported that the National Development and Reform Commission has projected that if currency appreciation of China continues, the textile industry will start to lose money as their profit margins are currently pegged at three percent.

This prediction came on the sidelines of Yuan hitting a new high against US dollar since its revaluation just a year ago.

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