October 26, 2007
October 26, 2007 - The Chinese Ministry of Finance and Commerce (MOFCOM) has announced that 16.6 million kilograms (kg) of quota for greasy, scoured and carbonized wool was returned in September and will be re-allocated this year. The amount is equivalent to 5.8 percent of the 287 million kg limit. Analysts have said that although the re-allocation is not large--probably amounting to around two or three weeks' imports and not adding any new quantity for importers--it is an important step as it is the first time that it has occurred, it favors processors and is indicative of the action outlined in the 2008 rules aimed at avoiding a repeat of this year's problems.
MOFCOM said that as the re-allocated quantity is limited, preference will be given to large-scaled enterprises that have a high ratio of quota utilization-to-allocation and still require quota. Reprinted in part from The Wool Record Weekly