A drop in the currency and a smaller offering are driving the Australian wool market to a new record. Buyers scrambled for wool during last week’s sale.

Superfine wools also moved upwards while medium Merino wools continued to be the most sought-after category.

The emergence, or increasing importance of China as a consumer market, has reduced some of the seasonality of demand from past years. Adding to the mix is the trans-seasonal garments that make up the new consumer’s wardrobe. Chinese demand for medium Merino wools last August saw the fake-fur product in frenzy, creating a 100 per cent rise in 21-micron wool over two weeks, which then completely dissipated again over the following three weeks.

The current market is not being driven by any single product, other than an increased demand from Chinese mills.

The medium Merino wool segment is having a run at present but the largest users including suit fabric manufacturers are facing severe price pressures. Their maximum purchase price is nowhere near the current greasy market.

Fine wools were just moving in sympathy, not creating new highs.

Chinese mills’ key concern is the level of supply of Merino wool from Australia. Chinese mills now understand Australia’s dry seasonal conditions are holding back production increases.