Home / Knowledge / News / Textiles / Australian wool auction prices down 3% this week

Australian wool auction prices down 3% this week

28
Sep '18
Courtesy: Pexels
Courtesy: Pexels
Australian wool auction prices declined this week due to the price resistance that has been simmering for a fortnight. All wool types and descriptions on offer were adversely affected to varying degrees, but it was the carding sector that was hardest hit, though all wools broader than 18.5 micron are coming off the strongest Spring levels seen.

The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) fell by 2.6 per cent or 54ac to close at 2013ac clean/kg for the week, during the sale week 13 of the current season ending September 28.

In US dollar (USD) terms too, the indicator shifted to the buyers’ advantage and fell 3 per cent or 45usc lower to 1456 usc clean/ kg by the close of selling. This is the lowest that indicator has been since the second week of May. Likewise, the Chinese yuan equivalent indicator was also 2.6 per cent lower, but it was those manufacturers using the euro who extracted the most discount as that indicator was 3.15 per cent lower across all wools.

“The declining fortunes of the short-term market are thought to have partly originated from local buyers in Australia rather than wholly from overseas. The sentiment from off shore Chinese traders, agents, users and manufacturers was perhaps considered to be too negative, and therefore too much of a risk for the local buyers to keep backing the market speculatively,” the Australian Wool Innovation (AWI) said in its latest ‘Wool Market’ weekly report.

During the week, a few of the largest Australian buyers appeared to simply step away from their normal purchasing behaviour and intensity. “With such heavyweight buyers out of the major action, the inevitable cheaper market eventuated,” the report said.

Meanwhile, European interest remained evident in the auction rooms and purchasing power was very strong on all better wools finer than 19 micron.

The question being posed for overseas mills as to what is the “right” price to pay has become a more urgent one to answer as each passing week sees no evidence of a surge in volume of wool becoming available, particularly merino, according to AWI.

“Another key factor is declining quality within much of the selection. The clips from drought affected zones have yields that are becoming increasingly harder to place into standard type contracts,” the report added.

A substantially larger quantity of 42,500 bales will be on offer at auctions next week. “So, some new orders will be necessary to stimulate activity,” AWI said. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

EU mulls imposing tariffs on Cambodian garments

Apparel/Garments | On 12th Nov 2018

EU mulls imposing tariffs on Cambodian garments

The European Union is mulling over imposing tariffs on Cambodian...

Courtesy: Lenzing

Textiles | On 12th Nov 2018

Lenzing reports solid result in FY18 first half

Lenzing's strategic orientation with a focus on specialty fibres has...

Courtesy: Invista

Textiles | On 12th Nov 2018

Invista’s Texas site sets adiponitrile production record

Invista’s site in Orange, Texas, has set a 12-month production record ...

Interviews View All

Siddharth Biyani, Mangalam Industries Pvt Ltd

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Arvind Saraf, Triveni Sarees

Arvind Saraf
Triveni Sarees

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

Riddhika Shah, SS Homme

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Harmeet Singh,

Harmeet Singh

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

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Sarah Perkins,

Sarah Perkins

Fairfax, Virginia-based Specialty Graphic Imaging Association (SGIA) is a...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

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

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

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

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Rupa Sood and Sharan Apparao, Nayaab

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


November 2018

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

news category


Related Categories:

Advanced Search