Home / Knowledge / News / Textiles / Australian wool prices adjust heavily downwards
Australian wool prices adjust heavily downwards
28
Aug '17
In complete contrast to the impressive gains of the previous week, Australian wool auction sales adjusted heavily downwards last week ending August 24. By the close of selling, the AWEX eastern market indicator (EMI) settled at 1572ac clean/kg, eliminating 42ac from the record level set in the previous week. The EMI in USD fell similarly by 40usc clean/kg.
 
Following two weeks of consecutive rises and seeing the EMI go into record territory, the market finally hit a price point where the price hurt the prompt demand, and the market reacted accordingly. And over 18% per cent of the Melbourne merino fleece and 12 per cent of the Sydney merino fleece failed to reach growers expectations.
 
“Given the prices being offered were just off a record high level, this was a paradoxical figure to most exporter buyers, but perhaps it was more to do with the speed of the market adjustment rather the actual price level that caused such high passed in rates,” the Australian Wool Innovation said in its ‘Wool Market’ weekly report for sales week 8 of the current season. 
 
The large orders emanating out of China in the previous week, seemingly dried up almost immediately at the start of last week. Buyers approached the sales with extreme caution, and as soon as weakness became the trend, most buyers retreated steadily to levels that were more reflective of where the buying demand has appeared the previous week. Those locally based exporters that had written forward orders also withdrew, and bought sparingly, waiting to achieve price levels that were more representative of where they had sold. 
 
Merino qualities broader than 19 micron sold 60ac lower whilst the average and good top making types finer than 18.5 micron were sold to levels 30 to 40ac cheaper. Significantly though, very strong buying from Italy ensured a different market direction on the spinners and best top making sale lots. Very few bales were allowed to go to their competition and this led to a slight escalation in prices, bucking the trend of all other wool sectors. 
 
Merino skirtings sold similarly to their fleece counterparts, with only the better pieces and broken types with less than 3 per cent vegetable matter (vm) holding onto their established prices. 
The strong rally that gratefully appeared on the crossbred segment of the wool auction was seemingly short lived, as all of these crossbred qualities (26 to 30 micron) sold cheaper to varying margins of between 5 and 25ac clean/kg. 
 
Carding types continued to soften as the largest buyers of these types were giving off weak signals of strength. Most traders were quoting cardings at levels which were 10 to 20ac cheaper by the close of selling for the week. 
 
At this week’s auction in Australia, around 45,000 bales are on offer. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Top 15 US fashion brands are collectively worth $70 bn

Fashion | On 22nd Jul 2018

Top 15 US fashion brands are collectively worth $70 bn

The top 15 American fashion brands are collectively worth close to...

Courtesy: Covestro

Textiles | On 22nd Jul 2018

Covestro's new products for waterproof textile coating

Covestro, which is among the largest polymer companies, has unveiled...

Evogene, IMAmt to work together in insect resistance

Textiles | On 22nd Jul 2018

Evogene, IMAmt to work together in insect resistance

Evogene, a leading biotechnology company developing novel products...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search