Unfortunately the wool market continues to struggle in 2022 due to several factors. The industry is still dealing with the after effects of Covid-19 and global trade disruptions. For wool it has meant a significant drop in demand and lower prices with a new crop always on the way.
China in particular is still trying to maintain a zero Covid policy which is having a dramatic impact on their manufacturing and retail business. It is far from business as usual in China as the government restricts the movement of people, services and business operations in an attempt to eliminate Covid. It makes everyday life quite difficult for the Chinese people and will have a negative affect on their incomes. Clothing purchases will likely be a low priority. As an example, today there were two positive Covid cases recorded in the city of Tianjin which has a population of nine million people. Tomorrow it is mandated that all nine million residents will be Covid tested without exception. Nation wide Covid testing every seventy two hours is still being implemented. The Chinese economy has suffered greatly as a result with consumer confidence now at an all time low.
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