The biggest problem for the world economy today is the unbridled spread of the new coronavirus, and the already weak economies are now in dire straits. Now domestic raw materials rose sharply, is bound to cause a variety of international price fluctuations. The economy, which has barely recovered, faces another severe test.
The fluctuation of textile materials can be seen to be caused by the following factors.
1, Staring in March, Australian wool is also gradually entering the off-season. The supply of Australian wool in the off-season in 2020 will be around 20,000 packs per week. Although the weather in Australia is favorable at present, it is affected by the global epidemic, the supply of Australian wool this off-season will not have a significant increase over last year, so ready in advance of raw materials. In addition, Australian wool affected by the epidemic, prices fell significantly, although after successive increases, but prices are still lower than in previous years, these factors contributed to the rise in the price of raw materials.
2, The advance of vaccination in various countries has brought the daily number of new coronaviruses in Europe and the United States to record lows. The World Health Organization has also said that the new coronaviruses are expected to be effectively controlled by early 2022. If the advance of the vaccine goes smoothly this year, it is highly likely that the rapid spread of the virus will be brought under control by the end of this year.
Entrepreneurs generally believe that once the virus is effectively controlled, countries will restart the economy, consumption recovery, is bound to lead to hot sales of products, for six months after the production of enough raw materials, this is another cause of rising prices for raw materials.
3，With the election of President Biden, the virus will be better contained in the United States, and it is widely assumed that the new administration will introduce more and more effective policies to benefit the American economy, beginning 2021, the market for this optimistic speculation, also contributed to the price of raw materials rose.
I think that with the advent of the post-epidemic era, The spring will not be far away.