As reported in the Weekly Newsletter on 27th November, prices for cotton and synthetic fibres have risen by more than wool prices in the past few months. This trend has continued in the past fortnight, with cotton and synthetic fibre prices rising again this week. As a result, Australian wool’s price competitiveness has improved significantly since the start of 2020. The ratio of the EMI to cotton price has fallen from an all-time peak of 7.92 in February 2019 to 6.32 in February 2020 and is currently sitting at 4.88. The ratio of the EMI against synthetic fibre prices has also fallen from an all-time peak of 7.25 in February 2019 to 6.08 in February 2020 and currently sits at 4.66.
The current ratios of wool against both synthetics and cotton are well below the peak levels reached in late 2018. For cotton, both the current price ratio and the average since January 2020 are well below the levels seen through the 2010s.
This means that wool is more competitive against both synthetics and cotton, which should support demand for wool by garment makers, weavers and knitters.
Further details, including a chart showing the trends in the price ratios between the Eastern Market Indicator and with both synthetic fibres and cotton prices, are provided in the full edition of this week’s Weekly Newsletter. Available to NCWSBA members.
