The Australian wool market saw a welcome stabilisation this week, driven primarily by renewed demand from Chinese buyers.
China’s two largest Merino top makers played a pivotal role, accounting for over 38% of the total Merino fleece volume sold. Their strong presence provided much-needed support to a market that had experienced several weeks of subdued activity.
This strategic buying helped restore confidence among sellers and brokers, suggesting a potential turning point in the market’s recent downward trend.
Although the overall global demand remains cautious, this renewed interest from China has been viewed positively by industry observers.
Crossbred wool types also recorded modest gains during the week, despite the headwind of a stronger Australian dollar, which typically dampens export competitiveness. The steady demand across a broader range of fleece categories reflects a cautiously optimistic sentiment in the market.
However, challenges remain on the supply side. Ongoing drought conditions across several wool-producing regions in Australia could impact future fleece yields and wool quality.
This may place further pressure on supply levels in the months ahead, potentially influencing pricing trends.
Looking forward, the market is expected to remain sensitive to buyer activity from key international markets, particularly China. Manufacturers are reportedly planning for future demand, suggesting that if positive buying trends continue, the wool market may see more consistent price improvements.
Overall, the renewed engagement from Chinese buyers has brought temporary relief and renewed hope to Australian wool producers and exporters. Continued global demand will be critical to sustaining this upward momentum.
