Woolen dragon rises, once again force - February market of wool

Although it is already in late February, the extremely cold weather in Europe still continues. Due to the growing crisis in the Eurozone, Moody's downgraded the sovereign credit ratings of the six European countries, and listed France, Britain, and Austria on the negative watch list. The Greek debt crisis is still very serious. In comparison, the U.S. economy maintained growth this month, and the inflation rate was “moderately” higher; the Chinese government lowered the deposit reserve from 24 February 2012 to further release the liquidity of the banking system and ease the pressure on the current market funds. The rate of gold is 0.5 percentage points to meet the need for gradual return of corporate investment and credit after the Spring Festival. In short, the debt crisis in Europe and the United States has led to a decline in exports, domestic demand can not be greatly boosted in the short term, it is worrying that the world economy in 2012 will be very difficult. However, the wool price in the international market has been rising due to supply shortages, high exchange rates, and it is even more difficult to keep pace.

View point a foreign market - the high price of wool stands now The wool market has become a game with the exchange rate, raw material prices are completely about the exchange rate, in the case of a small supply, the exchange rate is high, the foreign market price fluctuations in wool ... ...

1. Australian market - expensive Australian wool, expensive Australian dollar Since last year's wool prices have been higher, the herdsmen have emptied their containers and sold all available sales of wool. At present, most of the pastures have no inventory, and the warehouse can be described as empty. After the Spring Festival in China, the industrial chain of the wool textile industry began to operate. Large companies with orders have not dared to open positions since the price was too high last year. As a result, there has been concentrated purchases after the Spring Festival and the market has once again experienced strong growth, but the last auction price at the end of the month. There is a callback. According to the observation of the Nanjing Wool Market, the Australian market index closed at A$1,207/kg this month and the US gold price closed at 1,284 US cents/kg, up 1% and 2% respectively from the previous month's close. In the second week of this month's auction, the market has grown significantly, and the eastern market index has risen by 50æ¾³, which is the largest increase in four months.

This month, the Reserve Bank of Australia announced that the benchmark interest rate remained unchanged at 4.25% and the Australian dollar/dollar quickly climbed nearly 100 points. Compared with almost zero interest rates in European banks, the Australian dollar became a sought-after currency, and the exchange rate fell to 1.064 in the second half of this month.

In February, the Australian wool market supply was 177,700 bales, with 156,800 bales, and the transaction rate was 88%. The top five buyers of wool were: (Australia) Viterra Wool Company purchased 22,687 bales of wool; Teck Wool Corporation purchased 12,950 bales of wool; Foxley bought 7,243 bales of wool; Modi Aino purchased 7010 bales of wool; 6505 packages.

This month, the Australian Wool Auction Day is scheduled to run four weeks ahead of Tuesday/Wednesday to assess the benefits and costs of both parties to the trade ahead of the auction date.

2. New Zealand market – high exchange rate curbs the rise in the price of wool Due to the economic downturn in Europe, the consumption of wool carpets has weakened, coupled with the fact that the exchange rate of New Zealand dollar has been strong, resulting in the current situation that although the stock is almost zero and the supply is limited, New Zealand wool The price did not continue to rise, but appeared to weaken. According to the observation of the Nanjing wool market, the price of lamb wool increased compared with the situation in the previous month. The prices of fine-bred hybrid hairs and coarse-bred hybrid hairs both fell. In February, the average index of all breeds was 923 new cents/kg (+0.5%) compared with that of January; the fine-branched hybrids had 562 new cents/kg of net hair (-2.6%); New points/kg net hair (-6.1%); lambs wool 559 new points/kg net hair (3.8%).

New Zealand wool supply was 72,196 bales this month, with 56,927 bales, and the transaction rate was 79%. The top five buyers who bought wool were: New Zealand International Wool Company bought 14201 bales; Matthews bought 13352 bales; Foweed bought 9553 bales; JSB bought 8954 bales; Dawson bought 3,215 bales.

3. The Uruguayan wool market conducted two auctions this month and the price rose slightly. The unfinished price of 20.6 to 21.0 micron Merino wool sets ends at 8 US dollars/kg, and the unfinished price of 22.7 to 24.0 micron Polwars sets hairs at 7.1 US dollars/kg, 28.6 to 29.5 microns. The price of unfinished hair on behalf of the Chinese liners closed at 4 US dollars/kg.

4. South African wool market South African wool held three auctions this month. Due to concerns about supply, South African wool prices have continued to remain at historically high levels. The Cape Merino Merino Index closed at 104.37 rand/kg net hair at the close of the auction on February 22 and remained steady above the 100 rand/kg key line, only slightly below the first auction in January. The highest quarterly value. The Rand exchange rate strengthened at the beginning of the month, but good quality wool still has a strong demand and prices are firm. The total supply for the month was 30,572 bales, and the transaction rate was 96%. The main buyers are Standard Wool Company (6603 packs), Lunpu Li Corporation (5484 packs), G Modiano (5451 packs), and Stucken (4528 packs).

Viewpoint II Domestic wool market - Several companies rejoiced after several Chinese New Year festivals. The company gradually resumed normal production. Since there were very few stocks, everyone started to buy wool, and foreign markets were in short supply. The wool price was auctioned in the second week of February. A surge in China’s currency, coupled with a stronger Australian dollar, drove domestic gross prices to jump sharply. In the face of straight-up wool prices, companies can only buy on the basis of demand, and more often choose to wait.

According to the observation of the Nanjing wool market, the average prices of Arawan wool, Australian wool comb, Australian carbonized wool, and wool topped up by 7%, 6%, 5%, and 6% respectively in January. The price of the variety dropped.

Statistics on Nanjing wool market quoted sub-index in February 2012 Unit: Yuan/kg Variety Average monthly average price of the previous month Aussie raw wool 110.85 103.3 7% 18% Australian wool comb sliver 122.2 114.75 6% 17% Australian carbonized wool 75.19 71.35 5% 6% New raw wool 42.71 43.8 -2% 16% Newly washed hair 44.1 44.25 -0.30% 10% New wool self-combed sliver 48.82 50 -2% 12% Uruguay top 57.72 58.4 -1% 16% European tops 47.23 47.5 - 0.50% 9% National Top 83.7 79.05 6% 19% © 2012.02 Business Agency - Textiles Branch Source: Nanjing Wool Market With high raw material prices, low downstream demand, and high product inventory pressure, many small and medium-sized enterprises are faced with an ebb and flow of sand . In the past, small workshops could not stand the turbulent bumps and could no longer survive. Many small businesses have painfully chosen to abandon the industry. Firms that insisted on not only must have strong strength, but also need to constantly improve the level of technological innovation and improve Service awareness, with a new attitude to meet the new historical period.

On February 19th, 2012, Chinese members of the Chinese-Australia Wool Joint Working Group visited Australia and held a third formal meeting with Australian members in Melbourne on the new terms of the deal, the settlement of disputes, the problem of dung and wool, and the detection of Chinese wool. The formulation of the certificate and the early trial operation of the Australian Wool Auction Day will be negotiated, which will play a role in promoting the trade order between China and Australia. Let's honor Hou!