• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Australian wool auctions witness robust sales & surging prices

13 Jul '23
2 min read
Pic: Shutterstock
Pic: Shutterstock

Insights

  • Australian wool auctions saw significant price increases this week, particularly for Merino wools, driven by strong demand from buyers.
  • Changes in forex rates also impacted the prices.
  • The surge prompted traders and exporters to adjust their strategies to mitigate potential losses.
  • Direct China top maker buyers were obliged to meet higher prices.
Prices spiked at this week's Australian wool auctions due to vigorous purchasing by local and overseas buyers. Merino wools ranging from 19 to 22 microns were especially sought-after, pushing their prices up by 3 per cent at the start of auctions.

The superfine merino categories, crossbred wool types, and cardings also fetched higher prices, with the superfine categories adding a significant 20ac clean/kg. Meanwhile, changes in forex rates, primarily AUD versus USD, escalated the CIF (cost, insurance, and freight) prices, the Australian Wool Innovation Limited (AWI) said in its commentary for sale week 2 of the ongoing Australian wool marketing season.

Customers who initially hesitated to follow last week's price gains committed to the new levels, especially those needing immediate supply. Those requiring wool for new contracts post the three-week auction recess will now have to adhere to the closing spot price.

Local traders largely drove the wool value increases over the past two weeks. They closed open forward books for July and August shipments and engaged in new business inquiries. This prompted exporters to ‘average’ old and new contract prices, thereby limiting potential losses due to the rise in wool prices, the AWI commentary added.

Although not absent from the buyers' list, direct China top maker buyers were compelled to accept higher prices to secure supply through the sales break. Despite this, they are likely to benefit from a 5 per cent value addition to their output compared to a week ago.

Wool auction sales will be on break until the week starting Monday, August 7, 2023.

Fibre2Fashion News Desk (KD)

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search