WORLD’S WOOL STOCKS

Press, Volume LXXII, Issue 21975, 26 December 1936, Page 7

WORLD’S WOOL STOCKS

INTERESTING FIGURES IMPERIAL ECONOMIC COMMITTEE (I»OM OtTB OW* CORET.SPONDBNT.) LONDON, December 2. In view of the sharp rise in the price of wool, the latest wool intelligence notes published by the Imperial Economic Committee are of particular interest revealing as they do the size of the stocks in various parts of the world and the activity in the trade. Price has risen as stocks have fallen, and the review, taking in both produclion and consumption, gives a good insight into the position of the industry up to the end of October. A slight increase m the aggregate of wool produced by Australia, New Zealand. South Africa, and Uruguay, the five chief exporting countries, is expected" for 1936-37 as compared with the previous year. Little change is anticipated in the total produced by Australia, but an increase is expected in other countries, with the exception of New Zealand, where a fall of about 20.000.0001b is considered likely. Retained Imports A review of the retained imports of wool by the nine principal consuming countries (with the exception cf Italv) shows that from January to September this year 6,000.0001b more wool has been held than during the same period in 1935, and 240,000,0001b more than in 1934. The United Kingdom retained 41 500.0001b mere this year, but Germany retained about 15 per cent, less and France about 13 per cent, less. Belgium’s retentions increased by 131 per cent., and those of Poland and Czechoslovakia increased by about 20 per cent. Imports by the United States were considerably greater, but those by Russia decreased Stocks cf wool are reported to be lew generally. Tops in France, Belgium, and Germany at the end of October were the lowest fer some considerable time, and in the United Kingdom, the United States, and Japan it is also estimated that stocks are much lower. It was these factors, and the usual seasonal increase in activity, that were responsible for the recent soaring in prices. Industrial activity in Great Britain during October was slightly lotfer than in 1935, according to the employment index, but there has been a definite increase in the woollen section and a fall in worsted activity. Business in spinning and weaving sections was somewhat retarded by readjustment to the new level Of replaced costs, but machinery was well employed ,on old contracts. All sections of the French industry showed marked activity, and German activity is reported to be fairly good, although all sections are now having to adjust themselves to the use of substitute raw materials, and prices of finished goods have shown a sharp , increase. Satisfactory conditions are reported in all branches of the wool textile industry'in Belgium. Wool consumption in the United States lor manufacturing apparel fell in September in comparison with August. This year the United States has consumed more home-grown wool for this purpose than foreign, the percentage having risen from 76 per cent, to at the end of September were about 30,000,0001b less than at the same time in 1935, and about 65.000,000 less than at the end of September, 1934. Stocks of wool in Japan in reporting warehouses at the end of September and October were specially obtained for the “Wool Intelligence Notes." Stocks fell from the high point of 86,500,0001b reached at the end of June to less than half that amount at the end of October, while there was a sharp increase in the number of reporting warehouses, although these do not all necessarily store wool. Comparison with 1935 at the end of October shows stocks of 38,000,0001b in 143 warehouses in 1936, as compared with 31,000,0001b in 109 warehouses last year. Taking the .variation in the number of reporting warehouses into account, it would appear that stocks have possibly now fallen below the level of last year. While these stocks take no account of wool stored in manufacturers’ establishments, they may be considered 9s indicative of the general trend of stocks in Japan. Imports of wool into Japan in September aggregated 3,800,0001b as compared with 2,900,0001b during the same month last year. This is usually a month of low imports. There was a sharp increase in imports from unrecorded sources in September. New Zealand and Argentina were the chief countries of origin, and the 2.500,0001b shown in imports includes only very small quantities from China and Manchukuo. Uruguay is a possible source of some importance, as shipments from that country to Japan have been running on somewhat higher levels during the last few months.