AUSTRALIA: Wool price rises set to stay
The results of the latest quarterly Woolmark Business Survey suggest that the rise in raw wool prices in recent weeks is being driven by strong demand and price levels could be sustained for several months.
Produced by Woolmark Market Intelligence (WMI), the survey's results, taken at the end of September, show that demand at each stage of the wool textile industry is 'rock-solid.'
In fact the survey, which is conducted among 250 leading wool industry companies around the world, reveals the results in the quarter to the end of September are the best in five years.
"Demand conditions have been quite strong for the last nine months all along the pipeline but what has really triggered the higher than usual prices is concerns about a looming supply squeeze in the first half of 2007 because of the drought," explains WMI chief economist, Chris Wilcox.
Demand has improved steadily at combing since the lows in 2002 to now be assessed as 'normal' to 'above normal' in all regions surveyed.
"The positive demand environment reflects continued favourable retail conditions and fashion trends for wool apparel," says Mr Wilcox. "Plus, low stocks at combing and worsted spinning stages are helping to drive the raw wool prices higher."
Within the global wool textile sector, the result is that combers are busy, reporting high capacity utilisation after years of industry rationalisation. There is good business for worsted weaving yarn spinners, although mills report that the knitting business is softer, especially in the woollen sector.
"All wool will benefit from the stronger demand in the short to medium term," says Chris
Wilcox. "Most of the gains will continue to be seen in merino wool between 19 and 24 micron.
"But, across the board, we would anticipate the raw wool price rise to continue, or at least stabilise, well into the first half of 2007."
Sectors: Fibres & fabrics
Help test our new apparel sourcing tool.
"Do we in the West really need a GBP4 pair of jeans or a GBP1.50 T-shirt?" This was the question put to delegates at the 12th annual ASBCI industry conference, where speakers pointed out that the rise...
The federal government has given the go-ahead to the integration of two of Australia's leading wool organisations after pledging AUD15m (US$12.5m) to support the merger....
Polyester filament and fibre maker Advansa has managed to develop polyester staple fibres in lengths that can be combined with traditional woollen fibres and processed into Coolmax high-performance fa...
A wool market economist has forecast that while wool supply will be low during the coming year, demand has lifted and prices should stay buoyant for some time to come....
Woolmark Market Intelligence, the market intelligence arm of The Woolmark Company, has expanded its reach into Latin America with the appointment of Uruguay-based agent Roberto Cardellino....
Business sentiment and orders in the global wool textile industry are still positive and should sustain current raw wool price levels in the March quarter, according to the latest Woolmark Business Su...
Australian Treasurer Peter Costello has hit back at a campaign by pop star Pink to boycott Australian wool products....
A new high-twist Australian Merino wool men's suit launched in Japan has been an overwhelming success say its developers, selling 96% of all stock in just four months....
- Outlook 2017 – What next for apparel sourcing?
- $1.7bn package to boost Pakistan clothing exports
- Mexico riots hit apparel retailers and shipments
- Is China about to burst its apparel trade bubble?
- M&S clothing growth – What the analysts say
- MAS Holdings planning second industrial park
- Aéropostale to reopen 500 stores across the US
- JC Penney latest retailer to shutter stores?
- Cambodia clothing exports at risk from Brexit
- M&S quality focus finally lifts clothing sales
- Global apparel markets: product developments and innovations, October 2016
- Anti-odour clothing: fresh fashion for an active lifestyle
- Global market review of lingerie – forecasts to 2022
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar