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Australian wool market sees modest price rises this week

07 Sep '24

2 min read

Australian wool market sees modest price rises this week

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Australian wool auctions saw modest price increases this week, particularly for finer Merino wool types, driven by favourable exchange rates, with the Australian dollar falling against the US dollar and Chinese yuan.
The largest Chinese buyer purchased 20 per cent of the Merino fleece.
Local trading companies also secured over 10 per cent of sales.

This week’s Australian wool auctions saw slight price increases, particularly for finer Merino wool types, largely driven by favourable exchange rates. The Australian dollar's depreciation against both the US dollar (-1.25 per cent) and the Chinese yuan (-1.52 per cent) allowed both local and Chinese buyers to compete more effectively at auction.

Despite fewer than 30,000 bales being offered for sale, these currency-related advantages enabled exporters to secure new business, although demand wasn’t strong enough to prompt significant price hikes. The largest Chinese top maker remained a dominant player, purchasing 20 per cent of the Merino fleece and 15 per cent of the skirtings. Local trading companies also supported the market, securing over 10 per cent of the offering, despite several sellers withdrawing clips pre-auction, the Australian Wool Innovation (AWI) said in its commentary for week 10 of the current wool marketing season.

The Australian wool industry faces a notable season ahead, with forecasts estimating 285 million kilograms greasy for 2024-25. Last season, China imported 284.3 million kilograms, representing 86.4 per cent of Australia's total production, highlighting the strong trade ties between the two countries, the AWI commentary added.

Next week, 32,000 bales are scheduled to be auctioned, as the industry anticipates further developments.

Fibre2Fashion News Desk (KD)

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