Data published by Cape Wools for the July 2007/January 2008 period shows the volume of South African wool exports (clean equiv.) was only marginally higher than 12 months ago. In comparison, the volume of Australian wool exports for the same period fell year-on-year reflecting a decline in wool production in this country. A relatively small supply of shorn wool in South Africa could be considered as one of the factors limiting a stronger rise in export volumes.

    In value terms, the rise in wool exports for the first seven months of the current season was much stronger. The steep rise in the value of South African wool exports was driven by a sharp increase in wool prices reflecting strong international demand and concerns about world wool supply.

    The top five export destinations for South African raw wool in volume terms were China, Italy, Germany, the Czech Republic, and India. Out of these top 5 countries, only China and India recorded year-on-year import increases.

    The increase of China's total wool imports was backed by a substantial rise in greasy wool purchases, whereas the volumes of scoured wool and tops fell sharply.

    Italy, the second on the list of major export destinations, has a different profile of imports. In the reporting period, the total volume of Italy's wool imports fell strongly year on year, however, the volume of imported tops rose year on year.