Demand Boost Prices Rise, New Year'S Wool Continues To Rise In Price

January 2011

Demand boosts Australia's price rise

Due to the revival of the world economy and the entry of western countries into the market, fierce competition in Australia and wool, coupled with limited factory inventories and increased demand, led to a rise in Australian wool.

In January 12th, the eastern Australian wool auction market opened in Melbourne at 1046 Australian cents / kg, an increase of 163 Australian cents / kg compared with the previous year's opening. After two consecutive weeks, the auction price soared, and the fourth day auction index broke through the highest point of 1189 Australian / kg in early 2003. The fifth day auction index was 1242 1242 cents per kilogram, and it fell back in sixth days. In January 25th, it closed at 1188 Australian cents / kg, which rose by 157 Australian cents per kilogram on the eve of Christmas Eve.

Compared with the same period last year, it rose by 268 Australian cents per kilogram, or 29.1%.

In January 3rd, the exchange rate of the Australian dollar against the US dollar opened at 1.0201, up to 1.0223, but the flooding caused Australia's economic losses, which made the Australian dollar decline to a minimum of 0.9803, but in January the exchange rate of the Australian dollar basically fluctuated near 1.

The exchange rate of the high exchange rate raised the US dollar index of the Australian wool index up to 1245 US dollars / kg, closing at 1184 cents / kg in January 25th, up 16.3% from the closing before Christmas, and 42.8% higher than the same period last year.

This round of price increases once again reflects the value of wool fineness, and the price of superfine wool has increased considerably. In January, 18 micron wool had rushed to 2000 Australian cents / kg.

The three week wool auction took place in Sydney, Melbourne and Freeman market respectively. As of January 25th, there were 131655 packages of wool and 121911 bags, with a turnover rate of about 92.6%.

New Zealand gross price inflation

After the filming of wool in January, prices of various varieties of the market rose generally for 3 weeks.

In January 27th, medium fine wool was closed at 826 new points / kg, up 4.4% from the end of last year, up 20.1% from the same period last year; the fine and coarse crossbred wool respectively closed at 570 new points / kg and 544 new points / kg, up 11.5% and 11.7% respectively from the closing time at the end of last year, 52.4% and 72.6% higher than the same period last year.

Lambs wool closed at 600 new points / kg, up 17.4% from the end of last year, up 50% over the same period last year.

In January, the exchange rate of the New Zealand dollar to the US dollar was also impressive, with a peak of 0.7812 and a low of 0.753.

The US dollar price of fine wool and coarse crossbred wool separately closed at 440 cents / kg and 420 cents / kg respectively, up 15.8% and 15.9% respectively from the end of last year, up 66.7% and 88.9% respectively over the same period last year.

The 3 Auction in January provided 61137 packages of wool and 59761 packages, with a turnover rate of 97.7%.

Uruguay wool Market

In January, the supply of wool trading was not large. Compared with the end of last year, the price of merino wool rose by 0.5 US dollars / kg, and the varieties of semi fine wool had not changed.

South African wool Market

After the market was filmed, traders worried that the supply of wool would not be enough and the gross price would continue to rise for 3 weeks.

The auction in January 26th hit a new high in the past 3 years, with the fineness average price index closed at 78.13 RAND / kg, up 15.06 RAND / kg, or 23.8%, compared with the end of last year.

A total of 27803 packets of wool were listed in the 3 auction.

35939 bags were sold, with a turnover rate of 98.7%.

The auction of the wool market in the UK continued to be strong in January 13th. The fine wool rose by 2%, and the half hybrid wool rose by 2.5%. The market provided 1574 tons of wool, with a turnover rate of 85%.

Domestic market price rises and rises again

2011 was the year when the national "12th Five-Year" plan was opened. The wool textile industry continued to boom in last year's production and sales. The demand for wool market was good. The price of wool rose in Australia, and the market price rose rapidly in January. In January 1st, Nanjing's wool market quotation was opened at 69.38 yuan / kg, rising continuously in 5 weeks, rising by 5% a month, and the final composite price index ended at 72.86 yuan / kg at the end of the month.

In January, the domestic market rose, cotton rose, chemical fiber rose, the textiles in the consumer market rose, and the price of wool rose sharply.

At present, the price level of Australian wool is an unprecedented sky high price, especially the price of ultra-fine wool which is commonly used in China is too high to be reached, which makes the production enterprises very embarrassed. The price of wool rises relative to the appreciation of the RMB exchange rate, and the cost of raw material import is reduced. In 2011, a large number of product orders in the international market need to be fulfilled, and the downstream wool textile enterprises are shrouded in the shadow of price rising.

Flooding in Australia has made it a foregone conclusion that wool production will continue to decrease this year.

In 2010, China imported 333 thousand and 400 tons, and imported Australian wool accounted for 53.3% of the total wool imports. The high price of wool in January this year made the market risk more tightly.