Wool prices have fallen for the seventh consecutive week in a row in Australia, as demand was weakened by the strength of the local dollar and the low quality level of fibers. China is increasingly importing wool from other origins than Australia, offering more diversified supplies in terms of origins and products, as reflected by our 5-year data below.
Wool prices have continued slightly declining this week in Australia in local currency terms, for the seventh consecutive week in a row.
The benchmark indicator has lost 7 Aussie cents (or 0.36%) at 1,937 cents per kilo clean.
Demand has been depressed by the strength of the Australian dollar with the same EMI rising 5 US cents or 0.4%.
Wool sales are negatively affected by the poor quality of most fibers available in the current period.
Fine quality lots are still attracting demand amid tighter supply conditions.
Crossbred wool prices have further soared this week, reflecting the Chinese demand in line of the current trends favoring fake fur.
China’s demand for Australian wool has last year declined more then 8% in volume terms, however rising 12% in US dollar terms, as a result of a 22% jump of unit prices.
The share of Australia’s shipments in total wool imports in China has fallen below the symbolic level of 50% in the past year.
The share of the second supplier in value terms South Africa has slightly dropped but smaller origins have benefited from an obvious effort for diversifying supplies.
Shipments from Turkey have for instance surged 110% in volume terms in five years, however from a low level, only accounting for 4.4% of imports, against more than 14% for New Zealand.
Products cannot be compared with higher-valued fibers from Australia or South Africa.
Source: Emergingtextiles
