Home / Knowledge / News / Textiles / Aussie wool auction prices escalate substantially
Aussie wool auction prices escalate substantially
06
Sep '13
Wool auctions in Australia continue to surprise and this week’s offering of 37,500 bales saw price levels escalate substantially. The bullish activity in sale rooms replicated, and in some type brackets exceeded, the previous series strong gains. The Merino sections of all types were the most affected with the current, apparently insatiable, appetite for these wools.

Whilst the Superfine end of the market remains in a positive growth trajectory, the real concentration of demand was firmly targeted at 19.5 and 21.0 microns. With supply currently running at 5% less than last year, and test data and anecdotal evidence pointing towards a significant fining up of the clip, there now appears to be a real willingness of both local and foreign buyers to lock in some future demand of types coarser than 19.0micron.

The 18.5 and finer end still appears to be being bought on a just-in-time basis. All wools remained well sought after right through to close with no signs of weakening.

The strength in buying is largely emanating from China, where large forward orders have been placed with traders and exporters for shipments ranging from prompt out to November, although very little speculative purchasing for the 2014 calendar year has been witnessed.

A major sell off of the greasy, top and yarn wool stocks that were being held in China for the past few months is rumored to have been completed or near so. Very little stock through the supply chain is now available for processors; hence the urgency and strong push from indent buyers representing that nation. Added to this volatility has been the pressure placed on exporters for delivery of contracted orders.

There now appears to be a common thought of the supply being oversold by buyers, particularly in the skirting, open top and carding areas. The short covering by forward positions in the market has exacerbated the situation and thus has caused larger than normal daily rises in price levels.

All Superfine Merino types were quoted at 60 to 75acents dearer by weeks end, with the exception being the lower/average types finer than 17.0 micron which held their ground well, but added only a few cents. Demand was firmly placed at the better end where some good Italian competition was added to the Chinese mix. The spinners types were again fetching premiums of over 100acents. Two large top makers (1 European, 1 Chinese) continue to purchase strongly in the superfine area, and unusually are concentrating on buying the better end of the selection.

The next few weeks will see auction offering volumes rise by 18% in volume to approximately 44,200 bales, as some of the previously held wool returns to the market and shearing is well in advance as the dry weather continues. Whilst demand is expected to be strong, a slight slowing may occur as buyers re-evaluate their financial and order book positions.

Australian Wool Innovation Limited


Must ReadView All

Textiles | On 19th Sep 2017

Karl Mayer expands service operations in Asia

Karl Mayer, a world leader in the production of warp knitting and...

Textiles | On 19th Sep 2017

Welspun bags Made in Green label by Oeko-Tex

Welspun, a leading home textiles manufacturer, has been awarded Made...

Courtesy: SGS

Textiles | On 19th Sep 2017

SGS expands testing facilities in Naucalpan, Mexico

SGS has expanded testing facilities in Naucalpan, Mexico, creating a...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Larry L Kinn
Suominen Corporation

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Prathyusha Garimella
Prathyusha Garimella

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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