Australian wool suffers losses again this week

Again, the finest merino wools at less than 18.5 micron fell the most with prices achieved generally 45ac lower by the close. Some Italian and Indian orders did help the better super fine merino fleece wools hold their values and by the close of selling, the lack of volume pushed these types 30ac dearer for the week.

“Results at this week’s Australian wool auction sales were again largely determined by the relative inactivity of our largest customer. Demand at present from China is best described as sporadic in activity and low in volume, which is preventing any clear signals for local buyers to act on decisively. While this week did produce some fresh business from China, the impact on the local auction market was noticeable but negligible as a bit of price tightening and buying pressure was witnessed towards the close of selling, particularly those sale lots of better specifications,” the Australian Wool Innovation (AWI) said in its commentary for week 19 of the current Australian wool marketing season.

Indian and European purchasing interest and indent operations are helping to maintain and steer the market, but the ability of these destinations to absorb additional volume as China remains quiet is limited. As with the rest of the world, the non-Chinese manufacturers at all segments of the supply chain are being severely hampered in their operations by the lack of experienced staff being available and swiftly rising energy costs. In fact, a few mills in Europe are strategising whether it is financially better to reduce work shifts, even though demands on their manufacturing space at good price levels are readily available, the AWI commentary added.

Buying mainly came from trader’s books, with support from the Indian and Euro sourced indents. China top makers were interested but all appeared to be concentrating on either Euro spec lots or ‘cheap’ lots.

Around 35,000 bales are scheduled to be offered next week on Tuesday and Wednesday.

Fibre2Fashion News Desk (KD)