Stocks of greasy wool are running low in China. On the other hand there is an oversupply of woolen fabrics. Fashion trends for the coming winter in China would determine whether demand will clear the fabric backlog and whether the innovative double-faced fabrics in particular, which use a lot of short wools, feature as a fashion statement for winter. When double-faced fabrics became popular, everyone starting making it, including a lot of low quality mills.
There is an oversupply of finished knitwear and wool garments in China. Women's reversible winter fashion coats are popular in China. Volatility is hurting the industry in all areas - from fabric makers to woolgrowers. The trade war between the United States and China set it off and confidence disappeared quickly. Wool wasn't being absorbed as much into new product, into blends, because it was considered too expensive. Exports of processed wool product out of China are down five per cent year on year and domestic wool sales are down 6.2 per cent year on year.
There’s too much fine wool on the market. Woolgrowers are not producing the basic 21 and 22 micron wools. This could mean that wool will be replaced in the market by synthetics.