Wool prices have returned to lower levels this week in Australia, after experiencing a short-lived rebound. The dragon boat festival has obviously depressed Chinese demand.
After experiencing a short-lived rebound in the past week, wool prices have returned back to lower levels this week in Australia.
Absence of two major Chinese buyers has depressed demand overall, as the dragon boat festival was looming.
The benchmark indicator has lost 23 Aussie cents per kilo clean or 1.22%, only dropping 0.5% in US or euro cents due to a rise of the Australian dollar.
Long-term factors are negatively affecting demand in the current period, especially the previous rise of wool fibers to levels which cannot be swallowed by the pipeline along to the retail.
Whatever the offer’s contraction due to Australian drought, prices may therefore continue declining in the coming period.
Source: Emergingtextiles
