September 26, 2003
The Australian Broadcasting Corporation reported that a bottleneck of processed wool and fabric in China and the rise in the Australian currency is dampening demand for greasy wool in Australia.
The market slipped again this week with the Eastern Market Indicator falling 24 cents to 878 cents a kg clean. China is Australia?s biggest buyer of wool -- securing $1.2 billion or nearly 40 percent of the clip annually.
?Processors of Chinese wool are reporting depressed demand for fabric from America and Europe. There has been a build up of stocks towards the fabric end of the chain so you can say that the fabric is probably where China is holding the most stock at the moment,? reported BWK Elders marketing manager in Shanghai, John Roberts.
Staff contact: Rita Kourlis Samuelson, ext. 29