Home / Knowledge / News / Textiles / Wool price levels retract in Australian markets
Wool price levels retract in Australian markets
25
Jan '18
Courtesy: Barega Merino
Courtesy: Barega Merino
Price levels retracted across most wool types at Australian wool auction markets during the week ending January 25, despite the volume sold for the current season reaching beyond the 1-million bale mark. Merino fleece wools managed to hold on reasonably well, but all other sectors of were adversely affected during sale week 30 of the current season.

The Australian Wool Exchange - Eastern Market Indicator (AWEX EMI) registered a 57ac reduction for the week to close at 1744 ac clean/kg. In USD the EMI fared better but still slipped 36usc lower to 1398usc clean kg. However, when expressed in AUD, the EMI is 23.5 per cent higher compared to 12 months ago. And more significantly, the demand-indicating USD price for the EMI is 31.5 per cent higher than the price at this time last year, Australian Wool Innovation (AWI) said in its ‘Wool Market’ weekly report.

“General thoughts from the trade pre-sale were rather negative apart from the merino fleece sector. More important was the general consensus post-sale that whilst prices eased off 35ac clean/kg on better types across most of the merino types, the fundamentals within that trade area have not changed,” the AWI report said.

“Demand has simply not turned off, but price to match demand is just being allowed to adjust to more useable levels. In fact, some small gains for wools finer than 18 micron were recorded for the week,” it added.

However, the urgency for purchases has been somewhat alleviated by the past few weeks buying. Overseas users now seem to have a 4-6 week buffer of inventory built up so further purchases do not need to be concluded immediately. Local buyers in Australia are not willing, or indeed have the funds, to take on stock at the perceived “high” levels in anticipation of that fresh business occurring, so they are prepared to let the market drift for the time being to find that sweet price spot that manufacturers seek.

Of most change this week was the drastic reduction across all of the carding sector. Some individual losses were as much as 300ac lower or verging on 18 per cent, but all wools making up the carding segment averaged reductions of around 190ac clean/kg. In reality these wools are coming off enormous record levels so this type of price adjustment was said to be coming, but the downturn surprised all by the magnitude of the losses and the velocity of the movement within just one week of selling.

The current downturn in merino is expected to be a brief respite, as drought conditions both in Australia and South Africa continue to be dangerous for upcoming supply numbers.

Sale week 31 will have over 42,000 bales for sale and “it will be most interesting to see the grower sellers reaction to the lower market.” (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Global economic upswing became broader & stronger: IMF

Textiles | On 19th Apr 2018

Global economic upswing became broader & stronger: IMF

The global economic upswing that began around mid-2016 has become...

Courtesy: ITMA

Textiles | On 19th Apr 2018

ITMA 2019 expanding space due to overwhelming response

Due to overwhelming response, the exhibition space has been increased ...

BIDA’s Europe trip to showcase a different Bangladesh

Apparel/Garments | On 19th Apr 2018

BIDA’s Europe trip to showcase a different Bangladesh

The Bangladesh Investment Development Authority (BIDA) is taking a...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kerem Durdag
Biovation II LLC

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

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

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

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


April 2018

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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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