Home / Knowledge / News / Textiles / Aussie wool market performs admirably this week
Aussie wool market performs admirably this week
12
Jul '13
Although the prevailing market sentiment has been very negative this past month, the wool markets performed quite admirably this week to close out selling in a more positive tone prior to the annual three week recess. Whilst the first two days saw prices retreat, the final day of auctions witnessed resurgence in interest, and the strong competition across the offering forced price levels back to near the average starting levels, with the AWEX EMI losing just 4acents over the week.

On a pleasing note, the Eastern Market Indicator headed into the break in sales remaining above the magical (and profitable) 1000acents/kg mark at 1007.The abrupt, but short-lived, mid-week rise in the AUD:USD exchange rate to approach 0.93 actually seemed to spark off some fresh prompt business out of India and China late on Wednesday.

This added more impetus to the keener buying pressure from the exporters to complete their forward orders already evident in the market, and some late indent buying from Chinese interests. Anecdotally, a surprising anomaly of the past 3 years is that quite often significant rises and falls in the exchange rates go against economic thinking; local prices fall when the currency gets “better” and rise when the currency exchange strengthens, and this past month movements appear to bear that theory out.

The long suffering sellers of superfine wool finally saw some encouragement this week, as the sector led the price improvements. Gains of up to 25acents were posted for most types finer than 18.0 micron, with the finer the wool type; the more the price was increased. With such a low gap existing between Superfine and medium Merino fleece this needs to continue for quite a few sales for the status quo in price premium to be re-established.

Going against the seasonal trend, the fine and medium Merino types 19.5 to 23.0micron fell this week by up to 10acents, whilst their finer counterparts rose. The most affected were the coarser types broader than 22.0 micron, however this sector is still considered over-priced by buyers and levels are only being held up by the severe lack of supply in this area.

Crossbred types lost a little ground this week, but only at the finer (28 micron and finer) end and by only 5 to 10acents. The coarser types remain keenly sought and levels were maintained.Carding types of all descriptions remain at the same lofty heights in price comparatively and continue to be the stand out performers in the market.

Despite the fact the market finished on a positive note, the best thing the market can take at the moment is a breather.

Hopefully the break in access to wool for the major users will build up some demand and we can head into the next half of the season on a better note. Traditionally the Chinese don’t have large production volumes in the midst of their summer (July/Aug), but as we head into Sept/Oct we should hopefully see demand pick up. The break will alsoallow some pressing credit and access to finance issues get sorted out and local buyers bank accounts be replenished.

Australian Wool Innovation Limited


Must ReadView All

Coats acquires yarn manufacturer Patrick Yarn Mill

Textiles | On 12th Dec 2017

Coats acquires yarn manufacturer Patrick Yarn Mill

Coats, the world’s leading industrial thread manufacturer, has...

India’s garment imports from Bangladesh up 56% post-GST

Apparel/Garments | On 12th Dec 2017

India’s garment imports from Bangladesh up 56% post-GST

India has imported $87.4 million worth of readymade garments from...

Courtesy: Badger Sportswear

Apparel/Garments | On 12th Dec 2017

Badger Sportswear acquires Alleson Athletic

Badger Sportswear, a leading manufacturer of athletic apparel and...

Interviews View All

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

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

December 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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