Wool in short supply, high demand in Italy

Mr Read – who recently returned from three weeks abroad – said optimism among spinners and weavers was at its highest levels in Europe, particularly Italy, in nearly a decade.

He said China remains the major export destination for Australian wool, but said it was good to have extra competition returning to the market.

Rising costs in China have seen garment buyers from eastern and northern Europe and the United States swinging back to traditional European suppliers. 

The weaker Euro is also helping Europe to compete.

 “Cheap Chinese garments aren’t necessarily cheap anymore,” he said.

In the past decade the European textile industry has shrunk considerably, with Italy’s Prato region alone going from 800 spinning lines to only 80.

Mr Read said there was a major problem with a lack of commission processing space through the wool pipeline in Italy, but remaining spinners and weavers were in a good position.

“The top-end Italian textile industry is really stretched when big retailers place big orders,” he said.

Smart woollen coating blended with cashmere and alpaca is very much in vogue and should see high-end producers have a good year, he said.

Mr Read said many weavers were also producing double face fabrics in wool and cashmere which had helped drive demand for carding wools. 

This strong demand came at a time when scoured and carbonised carding wools are in short supply.

Mr Read said Italians were well aware Australia’s wool supply could drop 8 per cent to 10pc this season.

“We believe the Italian market will have to buy in the next month as there are just no carding wools in either Biella or Prato,” he said.

 “While demand is up, supply is exceptionally tight and the combination of the two should be a good result for Australian woolgrowers.

“Our plant will be kept busy and we will be chasing these wools anyway we can.”