Wool prices have dropped this week in Australia, over a lack of demand from major Chinese buyers. The poor quality of drought-affected wool is also behind the decline of prices.
Wool prices have declined this week in all currency terms, as a decline of the Aussie dollar has not helped supporting demand.
The market indicator has lost 8 A$ cents per kilo clean or 0.4% at 1,952 cents, dropping nearly 1% in euro cents and even 1.03% in US$ terms at 1,362 cents.
Two major Chinese buyers have refrained from ordering, as a result of current uncertainties in the textile and apparel industries in China.
The poor quality of most wool fibers offered this week has also depressed demand.
The market has continued falling in the first quarter in volume terms wherever rising in value terms, after a new rise of prices from a year earlier.
However, wool prices are now clearly experiencing a downward trend and the correction could be far from over.
Source: Emergingtextiles
