NZ wool regains ground in Euro carpet market

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WELLINGTON - Carpet spinners and manufacturers exhibiting at the international Domotex carpet and rug show, held in Germany earlier this month, say wool is regaining market share in Europe, according to Wools of New Zealand.

"Manufacturers in the key European markets for New Zealand wool - UK, Belgium, Holland and Germany - are all reporting that wool is regaining the market share it lost over the last two to three years," said Wools of New Zealand's managing director, John Grainger.

The promotional company of the New Zealand Wool Group was cautiously optimistic about the coming year for New Zealand's strong wool types. The European market was still considered to be slow but moving in the right direction.

Carpet yarn spinners were saying business was good, while 9 to 12 months ago they were struggling a bit, Mr Grainger said.

"Europe's going to be a little better than it was in 1999, Australia's showing significant growth, while the US is going to be a whole lot better again. But unless the Chinese increase their purchases, any price rises for farmers will be limited," said Mr Grainger.

He cited a number of reasons for the turn-around in Europe.

"The economy's a little bit better, wool prices have been stable and low, and some of the markets which had a swing to hard flooring are realising that it's not all it's cracked up to be."

Carpet manufacturers, particularly those positioned in the middle part of the market, were upgrading the quality of their wool carpets.

"Manufacturers are producing better quality ranges because that's the only way they can really make money and survive."

Also from New Zealand, representatives from Feltex and Cavalier Bremworth visited the show.

Wools of New Zealand will also be promoting New Zealand wool at Surfaces, the biggest floor coverings trade show in the US, on Wednesday.

- NZPA