China and Czech Republic increase wool intake, India decreases

China and Czech Republic increase wool intake, India decreases


Sheep
Modiano Victorian wool manager Lou Morsch at the Melbourne woolstores. Photo by Laura Ferguson.

Modiano Victorian wool manager Lou Morsch at the Melbourne woolstores. Photo by Laura Ferguson.

Aa

A recent report has detailed where Australia's wool clip is being exported to.

Aa

India’s intake of Australian wool has decreased by more than two million kilograms, equating to a 12.6 per cent slump on the previous season.

Despite this, India retains its position as the second highest importer of Australian wool, purchasing 5.3pc of the country’s wool clip.

This information comes out of an export report by Australian Wool Exchange (AWEX) and Australian Bureau of Statistics, which lists the seasonal comparison of the top 20 export countries from July 2017 to March 2018.

While India bought less wool season-on-season, AWEX senior analyst Lionel Plunkett said the recent figures weren’t alarming. 

"India bought 2m kgs in March 2018, which of the 35m available, is 5.7pc, and that’s more than their annual total at the moment,” Mr Plunkett said.

“…India wasn’t keen on chasing the high prices but that might have changed.”

China remains Australia’s largest exporter, purchasing 75pc of the nation's wool sold at auction. The Asian powerhouse increased its intake by 11.5m kg, a 6.1pc increase on the season prior.

Despite the jump, Mr Plunkett said the increase was not significant as China’s intake had fluctuated in the last few years.

While China historically purchased cheaper-styled wool, the country was dominant in the 19-micron and finer category, taking 85pc of the offering last season.

The report also revealed a fall in Japan’s intake, which Mr Plunkett said was interesting given its dominance in the 80s and 90s.

Sitting at number 10 on the list, Japan purchased 0.6pc of Australia’s wool clip, just over 1.6m kgs, and while this was an increase of 43pc on the previous season, it was still a very small amount.

Another country which saw a significant jump in import volumes was Czech Republic, which increased its intake by 1.7m kgs, or 14.7pc, to take-home almost 14m kgs for the season.

Modiano, Victorian wool manager Lou Morsch, attributed the increase to upgrades at the European processor's Czech Republic mill.

“Competition has gradually disappeared in Europe as some of the big players have left, and Modiano has survived, putting it in a pretty strong position,” Mr Morsch said. 

Aa

From the front page

Sponsored by