The price of steel wool is now at an all-time high as the global demand for the luxury fabric continues to grow.
The most expensive yarn is made by the Australian wool giant Woolen, which has sold over 1.2 billion rolls of the cotton fibre in the last six years, according to data from Euromonitor International.
But it’s not just the big companies who are jumping on the bandwagon.
The biggest companies in the yarn industry are increasingly opting to use cheaper varieties, which means there’s more competition in the market.
That means a cheaper option is going to be the cheaper option, so the price of the cheapest yarn in India has jumped to over $20 per kilogram, according a report by Euromonitors.
“The price of cotton fibres is also at an extraordinary high, in particular the price on sale in China is a very, very high, even though the prices are rising everywhere else in the world,” said Kavita Singh, senior analyst at Euromonter.
“If you are an Indian consumer, if you want to buy yarn from China, you can’t afford to pay the higher price.
It’s going to push the price up.”
India’s growing demand for steel wool started in the 1970s, and in recent years the market has been steadily growing.
The average price of a kilogram of steel fibre increased by around 30 per cent from 2015 to 2020, according the latest data from the National Institute of Materials.
The trend is set to continue as India’s economy continues to expand, and the demand for luxury fibres continues to rise.
The global demand of steel is expected to reach $200 billion by 2021, up from around $50 billion in 2021.
The demand is set at $80 billion in 2030, up 30 per of the past year, and it’s expected to hit $130 billion in 2031.
But with the price continuing to rise, the demand has only increased.
“India is growing fast,” said Rishi Gupta, co-founder and managing director of the Indian company, Indian Wool, which markets a range of products including clothing, home furnishings and furniture.
“We are seeing demand from China and the rest of the world, and our market has grown tremendously in the past few years.”
The Indian Wool team recently partnered with the Chinese company, Woolen Group, to produce a range in India, including a range called the Alpaca Wool Blanket.
“Our products are not only cheaper than the traditional cotton fabric, but also we are also producing the cotton fabric at a lower price point,” said Singh.
“With the growing global demand, the cotton yarn industry is also facing significant challenges.”