industry news
Wool industry faces yet another battle By Yang Xiaoxiong, chairwoman of Nanjing Wool Market
T
he COVID-19 outbreak in 2020 changed people’s lives. After a difficult fight against the pandemic, many industries in China are slowly recovering. Even shopping malls and catering services are starting to open. Yet one industry, struggling to get back to work, has been dealt another fatal blow. This is the textile and garment industry with the largest proportion of exports. As the outbreak abroad spirals out of control, the biggest concern is the decline in orders, either already cancelled or on the way to cancellation. We are facing
an unprecedented predicament and crisis, which is the most incisively and vividly manifested in the current situation of textile industry in 2020. As of September 11, 2020, NWM Comprehensive price index closed at 6043 cents/kg, down 33.5% from its 2018 peak, but still higher than the 2008/09 lowest of 4,014 cents/kg. The main reason is that the market price surged to a new record from 2015 to 2018, and a large amount of high-priced inventory accumulated. Even if the market plummets, it is still
hard to fall below the minimum price. Others are comparing declines to those seen during the 2008 financial crisis and ready to stock up. Although during the economic crisis in 2008 the prices fell, all industrial chains and terminal consumption were basically in normal operation, as the roadblock was removed, so the market recovered soon after financial order was restored. All industrial chains have been damaged to varying degrees, after being hit by the pandemic this
Madame Yang (back row centre) with Nanjing Wool Market team 26 | wool2yarnglobal 2020
