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Business
It’s all no change – and no rain
AS expected the wool market yet another handbrake being
last week was a rubber stamp applied as those European fabof the previous week and no ric producers with customers
change in prices overall was in the USA obviously cannot
registered with the AWEX continue production in the face
EMI showing a single cent of a 50 per cent price hike, so
gain in local currency terms, understandably they hit the
unchanged in USD and also pause button.
in Euro.
Now, with the Federal Court
Obviously within the basket determination that many of the
indicator the better wools are tariff pronouncements are void
continuing to get dearer and there is simply more confusion
conversely the poorer wools, in global trade as the Appeals
with lower yields, higher VM Court tries to sort out this latand less tensile strength are all est saga which will inevitably
trending lower.
end up in the Supreme Court
The overall picture, however, of America.
remains one of continued lanNo doubt lawyers will be the
guishing at current levels, wait- biggest winners.
ing for things to either settle
Consumers in the US are
down, or potentially provide understandably a little nervous
a spark to reignite the market. and their previously buoyant
All international sectors of activity is beginning to wane,
the industry are very aware of but so far the economy is resistthe challenging climatic condi- ing a negative trend but anations being faced by the grow- lysts are getting nervous about
ing fraternity particularly in the months ahead.
Similarly, in
Southern NSW,
Victoria, SA and
Europe, the data
Tasmania, except
is struggling to
for the city-centurn around,
tric politicians it
although the
Damien Whiteley
would seem.
massive German stimuIt is perhaps
lus package on
testament to the
The overcollegiate nature
defence and
all picture
of the wool
infrastructure
industry that a
remains one spending should
posiwool processor
of continued produce
tive, although
in downtown
languishing slightly inflaZhangjiagang
tionary trends
is very aware
at current
of the struggles
in the short term
levels
through drought
which will be a
which his supwelcome relief
pliers are being
for the beleaforced to endure when those in guered Euro Zone.
Spring Street or North Terrace
If they can somehow manage to sort out the kerfuf昀氀e on
appear oblivious.
Nevertheless “it always rains their eastern border things will
at the end of a dry spell” as the begin to look much brighter
late Don Lindner from Burra over there as they enter their
used to often say and hopefully summer holiday period.
the season changes for the betChina remains the elephant
ter soon.
in the room economically
Changing the price cycle speaking with no 昀椀rm commitof the wool market is perhaps ment from Beijing yet on how
a more herculean task with to turn the economy around.
almost constant changes in the
Slow and steady seems to be
global tariff structure besetting the mantra, along with the age
the market.
old Maoism of ‘struggle makes
The imposition of a 50 one stronger’ which is unlikely
per cent tariff on Europe last to wash with the younger genmonth, followed by its suspen- eration of Chinese.
sion for 30 days, in an effort to
Uniform purchasing offimove negotiations along was cials have been implored by
yet another reason for proces- Beijing to be ‘frugal’ this year
which will probably mean more
sors to hit the pause button.
To be fair, 昀椀nding a resolu- polyester in blends, and more
tion to a complex trade issue domestic wool as well, leadwhen one side is a conglomer- ing to uncomfortable, itchy
ate of 27 different countries is garments for millions of govalways going to be a challenge, ernment workers.
and the EU loves a meeting, but
The denim industry appears
hates a decision, so Mr Trump to be 昀椀nally embracing wool,
is merely trying to hasten the more than 30 years after the
process.
昀椀rst wool/denim jeans were
But for the wool market it is produced. The Woolmark
WOOL
REPORT
‘
Company’s latest Business
Newsletter highlights some of
the new trends in this versatile fabric which are including
merino alongside the ubiquitous cotton 昀椀bre as well as a
smattering of other 昀椀bres.
The blending of merino with
cotton has increased markedly
this year across all garment
forms, so much so that many of
the 昀氀eece wooltops being produced are actually being cut or
stretch broken to facilitate processing on the cotton system.
This provides a welcome outlet for the many tender 昀氀eece
lines coming from drought
affected areas this season.
Another price sensitive
retailer providing a good outlet for numbers of garments is
the Japanese retailer Uniqlo
which has just opened a store
in Adelaide to go along with
their 2500 stores worldwide.
So with plenty of ongoing
Washington-based turmoil to
pervade a sense of uncertainty
and procrastination and an ever
tightening supply situation the
market is likely to continue to
be range-bound for the next
few weeks in the lead up to the
winter recess, by which time
we will hopefully see some
meaningful rain across southern Australia.
Damien Whiteley
District Wool Manager
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TASMANIAN COUNTRY Friday, June 6, 2025 21
