Economic Turmoil and Chinese New Year Infects Wool Prices
Source: New Zealand Wool Services International (NZWSI) Date: 2009-02-02
| Wool prices indicated a downward trend at the North and South Island auctions. The New Zealand Wool Services International (NZWSI) points out that inactivity in China due to New Year festivities and the continuing world economic uncertainty are the reasons behind this. The easing value of New Zealand dollar provided little support to the market. A total of 15,000 bales were offered at sales in Napier and Christchurch, with a quarter of the bales passed-in. Hogget and carpet wools were 1% - 2% cheaper. Delicate lamb fleece prices dropped up to 2.5%. Prices for mid micron fleece, fine crossbred fleece, poor style shears, and combing oddments rose up to 2.5%. Industry sources anticipate a similar amount for wool will be auctioned in the coming week as well. Mr. TC Bilandani, Chief Executive, New Zealand Wool Services International Ltd, (Indian Operations), while speaking exclusively with Fibre2Fashion expressed his appreciation about the Indian woolen market. He said, "India has been always a very important market for New Zealand Wools. In last ten year India has been consistently importing 13-16 million kg every year, mainly for the carpet sector – Hand knotted and Hand tufteds. New Zealand wools are undoubtedly the best available wools for the carpets". While talking about the current year's performance, Mr. Bilandani said, "This year 2008-09 we have seen unexpected fall in the price of New Zealand wools. The drop in prices is as much as 30-45% in all the qualities. The main reason behind this drop is weakening of Kiwi Dollar against US Dollar by as much as 26% since July 2008. And also the drop in demand". He also remarked, "America has been the biggest single buyer of Indian handmade carpets, and because of recession there carpet (the luxurious item) is the last item on the shoppers list which has affected the wool consumption". When Fibre2Fashion asked about the future of the wool market, Mr. Bilandani said, "This year Carpet fairs like Atlanta and Domotex has not brought any positive results either, probably the worst in last ten years. This will be reflected in less wool buying by the carpet industry at least for next twelve months". | |
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