Australia : Return Of Chinese Buyer Recovers Wool Prices

The wool prices has recovered sharply as Chinese buyer comes back to the market.

J S Brooksbank trading manager Andrew Campbell says Chinese buyers are starting a cautious return to the market after they did not buy any wool at all over the last couple of months due to the Sars outbreak, causing lambswool prices to plummet.

The Meat and Wool Innovation strong wool market indicator went up 10c to 435c/kg with lambswool prices jumping 6c to 422c/kg.

Lambswool prices gradually increased over the past few weeks but Campbell says they are unlikely to get up to last year's highs next season.

Masurel Fils managing director Peter Whiteman says the gradual rise is largely due to a price slump in the Australian market that took New Zealand prices down with them.

New Zealand and Australian carpet mills were still going strong despite crashes in the mid micron prices.

Whiteman says wool prices still have some way to go before making it to pre-crash levels and growers are unlikely to see record prices next season.