Home / Knowledge / News / Textiles / Prices plummet 9.7% at Australian wool auction this week

Prices plummet 9.7% at Australian wool auction this week

Aug '19
Pic: Shutterstock
Pic: Shutterstock
Australian wool auction sales went into freefall this week registering the largest weekly fall since 2003 in AUD terms. The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) lost 163ac or 9.7 per cent to 1513ac clean/kg. In US Dollar (USD) terms the results were of similar magnitude by lowering 9.6 per cent or 109usc to 1026usc clean/kg.

"A total lack of confidence, brought on by the slowing global economy, saw the majority of buyers desert the local auction markets. No sector was left untouched as prices plummeted from the outset. Quite incredibly it was this same sale last year that the Australian wool market hit the record EMI of 2116ac," the Australian Wool Innovation Limited (AWI) said in its 'Wool Market' weekly report for sale week 7 of the current season.

In AUD terms, the EMI last traded around the 1513ac level at the end of September 2017(1522ac). The AUD EMI has traded above the 1513ac mark for 23 of the past 30 months (77 per cent of the time) since March 2017. The EMI has averaged 1783ac during that 2.5 year period. Prior to that, the 2.5 year average (August 2015 to Feb 2017) EMI was 1222ac. The 5-year average AUD EMI is 1496ac or 17ac below the price of EMI on August 16.

In USD terms the decaying demand is more starkly evident. The current USD EMI of 1026usc last traded around that number in January 2017 (1032usc). The USD EMI has been above the current EMI for 32 months of the past 3 years, (89 per cent) which has seen that indicator average 1265usc during that period. Prior to that, the 2- year average was 913usc. The 5 year average USD EMI is 1126usc or 100usc above the current EMI.

The pre-sale sentiment was massively negative, during the week ending August 16. Just minimal carbonising orders were still available but at reduced rates and the odd European types were needed, but overall demand for the standard China types was practically nil, the AWI report said.

The Sino-US trade imbalance dispute and to a lesser degree Brexit have been the dampeners on the mood of the global economy, but this week saw the emergence of recession in the US talk as the inverted bonds yield issue came to the fore. Consumer and manufacturer confidence continue to take a hammering and most have taken flight to safety and are sitting on their hands (and money).

The auction scene saw the superfine merino (finer than 18.5mic) fleece types dip by 150ac whilst the broader merino fell by up to 200ac. Skirtings were also 150 to 200ac cheaper as were the crossbreds. Cardings were the least affected and dropped 30ac for the week. The tone of sale rooms was dreadful, with just three or four companies participating within the type categories. The two largest top makers plus two traders were picking off the majority of the sold lots but significantly 35.8 per cent was passed in and 16.7 per cent was withdrawn prior to sale, representing over half of the original scheduled volume failing to meet the price expectations of the sellers.

Next week auctions will take place at only two places—Melbourne and Sydney—instead of the usual three places, and 33,696 bales will be up for grabs. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Textiles | On 23rd Aug 2019

Trade war to help India's MMF exports grow by 5-7%: SRTEPC

The US-China trade war has opened up an opportunity, which will help...

Indian cotton spinners’ performance likely to weaken: ICRA

Textiles | On 23rd Aug 2019

Indian cotton spinners’ performance likely to weaken: ICRA

The performance of Indian cotton spinners is likely to weaken in...

Pic: Devan Chemicals

Apparel/Garments | On 23rd Aug 2019

First Devan R-Vital CBD-infused textiles hit the market

Devan Chemicals launched its CBD (Cannabidiol) fabric treatment at...

Interviews View All

Jurgen Gauger, Spreadshirt

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Textile industry, Head honchos

Textile industry
Head honchos

It is a well-calibrated budget

Top executives, Textile industry

Top executives
Textile industry

Technical textiles industry moving back to Europe

Abhishek Dhanuka,

Abhishek Dhanuka

Vyom International Pvt Ltd, established in 2002, is one of Surat's leading ...

Boban Charly,

Boban Charly

Bierrebi designs and manufactures automatic machines that cut fabric into...

Amol Bhagwati,

Amol Bhagwati

A textile finishing solution provider, Inspiron Engineering Private...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

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

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

August 2019

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

news category

Related Categories:

Advanced Search