The worldwide wool textile industry is in trouble with some orders at record low levels, a new survey has claimed.
According to latest Woolmark business survey for the quarter to March, a big drop in demand from the world textile industry is expected to flow through to sales of raw wool before too long.
It blamed the low orders on slow retail clothing orders, resistance to price rises, and excess stocks in sectors such as worsted spinning and worsted weaving. It added: “New orders are generally poor, there are excess stocks in some sectors, and production mostly below year-earlier levels.”
“In western Europe and Australia, orders to early-stage processors in the March 2002 quarter were at the lowest ever recorded,” it continued. “While order levels were a little better in China and Japan, Korea and Taiwan, they were still below normal, and failed to meet expectations.”
Woolmark warned unless the situation improved soon it would reduce demand from all countries for raw wool at auction.