Home / Knowledge / News / Textiles / Fine wools come under great pressure
Fine wools come under great pressure
19
Sep '11
The AWEX Regional Indicators finished 1.5% lower, on average, at sales in Newcastle, Melbourne and Fremantle this week when the US exchange rate fell by 3.6%. This was the first Newcastle sale of the season.

45,020 bales were on offer, compared with 35,181 bales last week. 9.4% were passed in, comprised of 5.7% in Newcastle, 11.6% in Melbourne and 10.5% in Fremantle. Pass-in rates for Merino fleece and skirtings were 11.8% and 6.2%, respectively. 40,793 bales were cleared to the trade.

Renewed concerns about a possible default by Greece again dominated global financial news during the week. As expected, this led to a fall in global confidence, which in turn led to a flight of currency from Australia to the “safe havens” and a fall in the US exchange rate. The overnight news on Wednesday night that France and Germany appear determined to avoid Greece defaulting resulted in a settling of the US exchange rate, but still at a level that was 3.81¢ below last Thursday's close.

It was disappointing that the fall in global economic confidence happened after last week's good wool market. As has happened in previous similar circumstances, the fall in confidence was reflected in an easing in wool prices in US currency and a fall in the US exchange rate (that softened the falls in price in Australian currency).

This was seen very clearly in Newcastle on Tuesday, where the Northern Indicator fell by 39¢ in US, but only by 6¢ in Australian currency. Prices were generally down across all fleece types other than those at 16.5 microns and finer. The 16.5 MPG was up on the day, and again on Wednesday, but lost these gains in a general easing on Thursday. All AWEX MPGs up to 18.5 microns either moved up or held their ground in Newcastle on Wednesday.

The gains in Newcastle on Wednesday were not replicated in Melbourne, where the 16.5 to 18.0 MPGS eased by 44 to 68¢ and the broader MPGs eased by around 20¢, on average. The Melbourne sale was affected by the presence of some poorer types (e.g. poor colour from areas affected by rain earlier this year) and weaners wool.

The fine wools came under great pressure later in the day on Thursday, with falls of around 50¢ on the day in the fine wool average MPGs (for Newcastle and Melbourne). The traditional Italian types on offer early in the day in Newcastle maintained the strong support seen for these wools during the week.

Overall, there was a large amount of fine wool for the market to absorb this week.

The smaller change in the Western Market Indicator on Thursday was associated with the lesser amounts of fine wool in the West.

Skirtings started well in Newcastle on Tuesday and Wednesday where the market moved up nicely for the better types. Prices also moved up in the South on Wednesday, but eased in the West. The market eased on Thursday in Newcastle and Melbourne (as occurred with the fleece types), but remained firm in theWest.


Must ReadView All

India begins review of anti-dumping duty on caustic soda

Textiles | On 23rd Nov 2017

India begins review of anti-dumping duty on caustic soda

The Directorate General of Anti-Dumping & Allied Duties (DGAD), under ...

Sri Lanka to set up 150 mini apparel units

Apparel/Garments | On 23rd Nov 2017

Sri Lanka to set up 150 mini apparel units

A mini apparel factory was opened recently at Sri Lanka’s Menik Farm...

Japanese stores witness dip in apparel sales in October

Apparel/Garments | On 23rd Nov 2017

Japanese stores witness dip in apparel sales in October

Sales of apparel, both in department stores and in retail chain...

Interviews View All

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Rupa Sood and Sharan Apparao
Nayaab

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

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

November 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search