Home / Knowledge / News / Textiles / Prices turn in buyers' favour at Australian wool auctions

Prices turn in buyers' favour at Australian wool auctions

May '19
Pic: rawpixel.com from Pexels
Pic: rawpixel.com from Pexels
A pragmatic approach to purchasing by a majority of buyers saw the market going largely in buyers’ favour at Australian wool auctions this week. The AWEX Eastern Market Indicator (EMI) retreated by 8ac or 0.41 per cent to close at 1952ac clean/kg. The EMI when expressed in USD was again much weaker than the AUD levels and fell to 1362usc clean/kg.

“The week’s operations featured the continued weakness of the two largest Chinese indent operators within the merino fleece. This lack of purchasing intent saw that sector flounder and drift downwards, as the exporters that were interested were advantaged and this allowed the price to drop back to their ideal levels,” the Australian Wool Innovation Limited (AWI) said in its ‘Wool Market’ weekly report for sale week 45 of the current season.

“As the two big guns from China basically sat out from this week’s purchasing activity again, in the merino segment, the processors and top makers took the opportunity to load up their inventory levels once more. The absence of the normally stiff competition of the indent operators, who represents mainly the China-based trading companies and smaller mills who don’t have their own import and international banking set ups, allowed a general freedom in price determination as the Australian exporters looked to the top makers to ascertain what buy-in levels they should pay, or have to pay to satisfy prompt needs,” the report added.

With all wool imports still banned into China from South Africa, the prompt machinery demand must chiefly be met by Australian supply, hence the heavier purchasing activity percentage by the two largest Chinese top makers at the top of Australian buying lists. At this stage of the season with just 7 weeks of selling left, there has been a staggering 248,004 less bales sold through the auction system than at the same period of last season. This represents a reduction of 15.7 per cent which far exceeds the AWTA key test data which shows a 10.3 per cent year-on-year retraction of all wool tested.

Mainly affected are high quality superfine wool clips and various forms of audited compliancy schemes clips being the areas of production most likely eliminated from the auction figures. In addition, many of the purchasing operators are now represented by direct buying operations in the regional areas, which would be almost exclusively direct to export and bypassing the auction system.

Australian wool export figures from March show China lifting its market share from 71 to 73 per cent for the current season. This falls short of the 76 per cent of a much larger offering last season, but with a quarter of the seasons numbers still to come in, that per cent is likely to lift again.

Merino fleece and skirtings fell 15 to 25ac during the week, while crossbreds gained 15ac and cardings remained unchanged to 5ac dearer.

There are 33,361 bales scheduled for auction next week. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: DWilliams from Pixabay

Textiles | On 21st May 2019

US tariff hike on Chinese textiles: Advantage India

The inclusion of chapters 50-60 in the recently imposed additional...

Pic: Lena Vanel from Pixabay

Textiles | On 21st May 2019

US CPSC considering changes to flammability standards

The US Consumer Product Safety Commission (CPSC) is requesting...

Australia, ILO work to raise Bangla working conditions

Apparel/Garments | On 21st May 2019

Australia, ILO work to raise Bangla working conditions

Australia and the International Labour Organisation (ILO) have...

Interviews View All

Sanjay Desai & Ashish Mulani, True Colors

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Sunil Kumar Sharma, Loknayak JPNSSSG Ltd

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Jurgen Gauger, Spreadshirt

Jurgen Gauger

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

Vikas Banduke,

Vikas Banduke

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

Apurva Kothari,

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

N Nithyanandan,

N Nithyanandan

Incorporated in 1999, Purani Textiless Private Limited is one of the...

Ian Russell, Pireta

Ian Russell

UK-based Pireta has developed a unique free-form process to add durable,...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

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

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

May 2019

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

news category

Related Categories:

Advanced Search