Consumers of wool reduce imports

Press, Volume CXIV, Issue 33671, 22 October 1974, Page 23

Consumers of wool reduce imports

Until demand picks up. prices for wool are unlikely to improve, markedly, says the Wool Board in its latest newsletter. But the prospects of demand improving do not look bright, 1 according to the information it presents.

“Continued depression seems likely in the British wool-textile industry in the short term. Reports from West European wool centres are equally depressing . . the newsletter says. The Japan Wool Spinners’ (Association is quoted as say-i ing that as the Japanese', woollen-yarn market slump is continuing, devaluation of j the Australian dollar will not, lead to an immediate increase' I in Japanese purchases. The Hayashi Spinning Com- i pany, a leading wool spinner, I says it will stop work for; three months unless the yarn market recovers; and several 'smaller firms will also close, in the near future. The Japan Wool Spinners’! Association has suggested l that the Australian Wool Corporation should enter the Japanese yarn market, thereby encouraging Japanese: mills to resume purchases of i Australian wool. The Japanese textile indus- ( try is seeking loans from the; Government and private; (sources to help tide it over! 'the recession. The funds arei (to help the mills cover losses! (from reductions in produc- j (tion and large inventories,; (and to continue working. STOCKS DOWN The Australian National Council of Wool Selling Brokers says, however, that Japan’s stocks of raw wool (are believed to be down to five months’ supply. Thus, if Japan wants to maintain a minimum of three months’ stocks, it will have to decide whether to begin buying again by about November. Under a sub-heading, “Slump statistics,” the board also says that the Common-

wealth Secretariat in London' has published figures showing: the extent of the wool-trade' islurnp this year. The figures : show Japanese wool imports; .down 42 per cent in the first; five months, United States imports down 60 per cent in six months, West German imports down 58 per cent in four months, French imports down 10 per cent in five months, and British imports jdown 27 per cent in three months. j Output of man-made fibre ■ tops in the 16 main manufacturing countries last year irose 20 per cent while wool jtop output fell 15 per cent, i Total consumption of wool in ! the 35 main manufacturing countries fell 8 per cent, while consumption of manmade fibres rose 15 per cent, i After rising 24 per cent between 1967 and 1972, the : Western world’s consumption of wool in carpets fell about

112 per cent last year to about :148m kilograms. Last year, New Zealand supplied 62 per i cent of the carpet wool going ‘to eight major consuming ;countries. . COSTS UP While prices for wool have been falling, the cost of preparing and distributing it — from the sheep’s back to the ‘ overseas mill — has risen 'about a third in the last 18 months, from about 33c per kilogram to about 46c, the ■ newsletter says. Preparation and distribu';tion costs amount to about 1,570 a bale compared with al- ■ most $5O early last year. Of 1 these the farmer pays about I $3O, of which shearing, at •■511.76, is the biggest single ■item. The exporter pays the balance. of which freight at : $17.55 is a major item. If the i. wool is scoured this adds an- . other $l4 a bale.