Year of the Dragon wool price and demand

No one knows the trend of wool prices after the Spring Festival, but many analysts predict that tight wool supplies and strong demand for global luxury goods, especially in China, will make this year's demand for all types of wool robust and prices stable.

2012 was the first year of the water dragon since 1952. When the dragon encounters water, it is prosperous. It can be seen from the eyes of others in the world. This year is of course auspicious for the heavily indebted Europe and the slow economic recovery of the United States. It is said that the Year of the Dragon can bring good luck, success and ambition. In Chinese culture, the Year of the Dragon is an auspicious year for marriage, entrepreneurship or having children. According to expectations, the birth rate of China's population will surge this year, which is good news for wool, because the increase in sales of wool follows. In 2011, China’s yarn and apparel exports to Europe and the United States all declined. In fact, the demand in Europe is on the rise, but the demand for varieties and blended materials is more diverse.

The Chinese exporter's report pointed out that the trend of development is that the blended raw materials increase and the price pressure increases.

Optimistically, U.S. buyers are developing summer orders in China and there are signs that the U.S. economy is in a period of improvement.

Mr. Wang Qiang, China regional project manager of the Australian Wool Inspection Bureau, said, “The negative publicity from Europe is beyond endure. Europeans still purchase wool clothing from China. As the two largest consumers of wool products, the economies of the United States and Japan are gradually warming up. In 2012, it is expected to increase the purchase of wool products." However, Mr. Wang believes that the largest consumer market is China. He particularly emphasized that China, including government agencies, such as the ** and the military's professional wear market. The wool content of business wear gradually increased.

The uniforms of police officers with lower duty grades are made of polyester fibers with a wool content of less than 10%, and the wool content is now expected to increase to 30%. The higher the position level, the higher the wool content of the uniform, usually 70% wool, 30% polyester. Therefore, business wear will become the main force of China's wool consumption. Mr. Wang predicts that the price of wool will remain at a reasonably high price. This is mainly because the supply is tight, and the demand will increase even if it is the same as last year. This will inevitably put pressure on prices.

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