A decision by the Reserve Bank to increase interest rates by 0.25 percent back in March (the first in 14 months) resulted in a reversal in consumer confidence in Australia and weaker building approvals – both significant dampners on domestic demand for floorcoverings.
This soft demand environment for wool floorcoverings in Australia saw prices for carpet wool drift lower during first quarter of the 2005/06 season. In addition, increased import penetration and the ongoing strength of the Australian and New Zealand dollars have hastened some rationalisation of Australasian carpet manufacturing.
Australian dwelling approvals fell sharply over July and August to their lowest level since April 2001. Home loan activity was also down. Owner-occupiers have stayed in the market, but investors retreated significantly.
According to Westpac, dwelling approvals are likely to trend higher late in 2005 and into 2006, as interest rates are likely to remain on-hold and pent-up demand is building, foreshadowing better demand for wool carpet and hence raw wool prices in 2006.
First established as a subsidiary of Australian Wool Services in 2001, Australian Wool Innovation Limited (AWI) became a fully independent public company limited by shares and owned by Australian woolgrowers in 2002.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
