Australian wool auctions see stable prices amid weak trading margins
This week's Australian wool auctions concluded with minimal movement in prices, as a calm auction environment and a stable Australian dollar kept the market steady, according to Australian Wool Innovation (AWI).
Despite firm competition from China's top wool processor and select Indian and Chinese buyers, price adjustments were negligible.
Australian wool auctions remained stable this week amid calm trading and a steady AUD. Despite firm competition, prices saw little change, with select high-quality lots fetching up to 10 per cent premiums. Exporters face tight margins, and declining bale volumesâ€'down 10â€'15 per centâ€'are impacting the wider industry. Around 23,600 bales are set for auction next week.
'Some notable prices were paid this week, notwithstanding the general unchanged nature of the market. These prices fetched around 10 per cent premiums and almost predominantly for the highest accreditation sale lots or the best quality and properly prepared wools on offer. This was on wools testing from 14.4 micron right through to 20 micron, although quantity limited,' the AWI commentary on week 48 of the current Australian wool marketing season said.
Offshore demand held the market steady, but exporters reported increasingly tight margins, with some trades near break-even or loss-making. The subdued conditions are affecting all segments of the local wool industry, from growers to brokers and logistics providers, as bale volumes continue to decline by an estimated 10 to 15 per cent.
With inflation impacting the broader economy, local supply chain players face limited scope to lower costs for clients. Instead, business owners are focusing on internal savings to remain viable.
Approximately 23,600 bales are scheduled for auction next week, with Fremantle not offering due to seasonal constraints.
Fibre2Fashion News Desk (HU)
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