Wool prices have slightly recovered this week in Australia, as Chinese buyers were returning to the market ahead of 1-week Easter break. China’s demand has sharply dropped nevertheless as of last November and at least until last January, as reflected by our monthly data of China’s wool imports per origin, in volume, value and unit value terms.
Wool prices have risen overall in the last week before the Easter break in Australia, with the market indicator being up 7 Aussie cents per kilo clean or 0.4%.
In US$ terms, the same EMI has even gained 12 cents or 0.9%, rising 0.6% in yuan and euro terms, respectively.
Prices have actually moved into opposite directions depending on micron categories, with super fine qualities once again falling and 18 to 19.5 microns rising by contrast.
A return of Chinese buyers to the market has apparently boosted merino prices.
Demand from China is structurally falling in the current period however, not only in volume but also in value terms, as reflected by our series of below tables.
Whatever the origin of wool imports, shipments have sharply fallen in the last months of 2018 and the first month of 2019 (latest available data).
The average unit price of China’s wool imports from Australia has also begun receding from last November.
Imports from South Africa have experienced the same downward trend, as a clear sign that the medium micron market is severely hit.
Source: Emergingtextiles
