Wool prices fell by more in the past year than have prices for the other major apparel textile fibres. One result of this larger decline is that the wool price ratio against both cotton and synthetics has fallen back sharply in the past 3 months. Based on the Eastern Market Indicator (EMI). The drop is particularly marked compared with cotton prices, with the current ratio below the average level seen in ten years between 2010 and 2019. The ratio is at the lowest level since June 2014. It is, however, well above the average levels recorded in the two decades before 2010.
The decline in wool’s price ratio compared with the major synthetic fibres used in apparel (acrylic and polyester staple fibre) hasn’t been as marked. As well, with synthetic fibre prices dropping by more in June than did wool prices, the ratio lifted a little in June and is above the average for the decade 2010-2019, as well as being above the average levels seen in the previous two decades. This decline in the price ratio means that wool’s competitiveness has improved, which may help support wool prices through increased demand from mills.
Further details, including a chart showing trends in the ratio of the Eastern Market Indicator against cotton and synthetic fibres, are provided in this week’s edition of the Weekly Newsletter. Available to NCWSBA members.