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Coronavirus impacts the wool industry in China

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The following update from Nanjing Wool Market (NWM) in relation to Coronavirus has outlines the impact it is having on the wool industry in China. (30 January ). The NWM spokeperson says: Coronavirus has spread very rapidly now.   So far there are more than 17239 confirmed cases in China, 361 people have died and 479 people have been cured.


At the moment the wool factories will remain closed until 10 Feb as requested by the government, so there is no feedback from the end-users / mills at this stage of the impact it will have on business.

Some wool factories are expected to delay reopening if more Hubei origin workers are involved. As such, production, supply and transport may still be effected. There is no general consumption/buying in China at the moment, hardest hit industry includes travel, entertaining, food-beverage and textiles. Certain medical industries are the most beneficial sectors, masks, medicines and advice.


General economy growth in 2020 is expected to be halved, i.e. 2-3% based on official prediction of 5%. The Coronavirus effect on global economy growth is still unclear.


The general public have been told to stay home as there are no signs things are getting better.  Everyone must wear masks when they leave home and at their workplace / office.  The most seriously affected provinces are Hubei, Zhejiang and Guangdong.  The Chinese government is taking aggressive action to fight the coronavirus.


Monday was the first day that stock market has re-opened after Chinese New Year holiday. The index dropped around 8.3% which is very close to day limit of 10%. The investors remain vigilant.


Government Policies for different areas:

Central Gov:

Official Chinese New Year Holiday extended to 2nd Feb. Hubei province is to be extended further;

Military took over the new hospital in Wuhai and many other epidemic centres in the city.

More cities have been shut in Hubei provinces.



No Enterprises are allowed to open before 24:00, 9th Feb. Any urgent request for resuming production must be specifically approved by the relevant Gov. authority.



1)      Enterprises coming back to work date as above with Provincial Notice

2)      Companies are encouraged to implement “work out of home” scheme as much as possible

3)      Companies must have Hubei origin staffs noted and reported to the local authority and must apply 14 days quarantine after they returning to their local residence

4)      Companies must prepare for monitoring and quarantine equipment, such as medical masks, body-temperature “guns” and an approved quarantine facility for people found virus affected. Safety Authority will carry out random checks on sites

5)      All provincial entry via roads/station/bus terminals have temperature measurement for all passengers

6)      No other provinces’ vehicles are allowed to enter unless checked/registered and quarantined.


Source: Nanjing Wool Market

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