Japanese wool yarn prices, as an indication of global prices, continued to rise in recent months to September in US$ terms. At the same time, raw wool apparel prices eased in August and September 2007 relative to the higher prices in May and June.
While average Japanese yarn prices in August/September have eased slightly in local currency terms (Yen), a stronger Yen against the US$ over the same period has meant in US$ terms, wool yarn prices continued to rise.
For 2/60s Japanese wool yarn (approximately 19.5 micron), the average price in August climbed 11% higher than the average price in May. Over the same period, the Australian EMI fell by 6% in US$ terms based on average monthly prices, which has helped ease the margin squeeze on spinners.
Overall, given that the medium term upward trend in Japanese yarn prices in US$ (beginning in early 2006) has continued during this period, with some restoration of margins at spinning, raw wool apparel prices at current levels appear to be sustainable while yarn prices continue to trade at current levels.
Australian Wool Innovation Limited
marketing@alchempro.com
