If the experimental sale is successful, Elders could go on to hold regular auctions in China. The move is ultimately designed to give Elders? grower clients higher prices by increasing competition for wool in what is by far the largest market for the Australian clip.
Elders? head of wool, Steven Read, indicated that buyers at the trial sale in Nanjing will be confined to Chinese companies with import and export licenses, or traders with licensed purchasing agents. If the company proceeds with regular auctions in China, however, all buyer clients of Elders will be given the opportunity to participate.
Nine sale lots will be offered, comprising wool of 17.1 to 24 microns. Bidding will be in U.S. cents. The wool is presently stored in Australia and has not been previously offered.