Home / Knowledge / News / Textiles / Wool price levels retract in Australian markets
Wool price levels retract in Australian markets
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

NCTO endorses USMCA; to lobby Congress to adopt agreement

Textiles | On 13th Dec 2018

NCTO endorses USMCA; to lobby Congress to adopt agreement

The National Council of Textile Organisations (NCTO) board of...

12 Asian garment firms to operate in Haiti by mid-2019

Apparel/Garments | On 13th Dec 2018

12 Asian garment firms to operate in Haiti by mid-2019

At least a dozen Asian garment manufacturing companies will start...

Pakistan evolving export-oriented policies: top official

Textiles | On 13th Dec 2018

Pakistan evolving export-oriented policies: top official

Pakistan is evolving export-oriented policies and is committed to...

Interviews View All

Sanjay Yagnik, Maa Tex Speciality

Sanjay Yagnik
Maa Tex Speciality

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

Top executives, Textile industry

Top executives
Textile industry

Sustainable fashion is also ‘slow fashion’

Top executives, Machinery Company

Top executives
Machinery Company

We will promote latest technologies at ITMA Barcelona

John Kelley,

John Kelley

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

Himanshu Jariwala,

Himanshu Jariwala

J Korin started as a partnership firm with four powerlooms in the textiles ...

Harssh Chheda,

Harssh Chheda

Mumbai-based Corporate Collars provides bespoke tailoring services for...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

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

Igor Chapurin, Chapurin

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

December 2018

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

news category

Related Categories:

Advanced Search