Conditions in the wool textile industry appear to be rather subdued with reports that orders are delayed and reduced and with mills operating on a hand-to-mouth basis. Recent reports suggest that some of the large wool-textile mills in China are doing relatively well, but the small and medium firms are finding business more difficult. The latest trade statistics show that China's exports of wool clothing are down by 3 percent in 2013, although exports of wool sweaters have improved recently. India, on the other hand, has seen a lift in its exports of wool clothing.
In spite of the tough conditions in the wool textile industry, raw wool demand has lifted in 2013. Raw wool imports by the major processing countries have lifted by 7 percent. This is driven by increased purchases from China, Europe and other countries, including Egypt and Malaysia. The risk is that stocks may build if product exports don't lift.
Reprinted from Wool Journal