BUYERS ignored rumours wool might join a growing list of Australian commodities no longer accepted as imports into China, at the Western Wool Centre (WWC) last week.
On the day stories aired on radio and in daily print media suggesting Australian wool, wheat, coal, lobster, sugar and copper ore were about to join barley, boxed beef, wine, cotton and timber as temporarily prohibited imports into China, the Western Indicator (WI) added 82 cents to finish at 1263 cents per kilogram clean.
Individual WWC micron price guide rises of up to 115c (19 micron) and strong competition between local, national and Chinese-controlled buyers for the 3065 bales on offer, clearly indicated what the wool market thought of rumours Australian wool might not be accepted into China from last Friday.
During the trading lunchbreak buyers - some with direct company links into China and others with client links to China - dismissed any suggestion Australian wool was about to be banned.
Although not prepared to be named - no one particularly wants to risk inadvertently offending China's Ministry of Trade - buyers were adamant wool would not be on China's list of commodities it no longer wants from Australia.
"It's fake news, it's been traced back, there's no source for wool being added to the list, it's just a rumour," one buyer said.
Others pointed out huge investment in wool processing and garment manufacture in China relied on a steady flow of wool that could not be sourced elsewhere currently in sufficient quality or quantity.
As well, they pointed out, China's exports of finished top-end suiting and fashion apparel - much of it produced for European and United States designer labels - required a high wool content for discerning markets unlikely to accept alternatives where natural wool is replaced by synthetic fibres.
Elders' State wool and livestock manager Dean Hubbard, who was auctioneer for the Elders fleece catalogue that day, responded "they certainly don't appear to have been" when asked if buyers were scared off by suggestions wool imports might be banned.
"It was very lively (in the sale room), we were calling a fair way above our appraisals, the market is well and truly up," Mr Hubbard said.
Only 28 of 2003 Merino fleece bales failed to reach their reserve price and the overall passed-in rate for the sale day was 1.7pc.
Main buyers were national traders Techwool Trading and Endeavour Wool Exports and local traders PJ Morris, Swan Wool Processors and Westcoast Wool & Livestock.
On the second trading day last week the WWC market continued its recent trend of going up one day and handing back some of the gains the next.
The WI shed 46c to finish the week up 36c overall at 1217c/kg.
Across the micron spread the WWC price indicators gave up between 44c (21 micron) and 69c (19.5 micron).
But Merino cardings was the only price guide to lose over the week, down 19c to 803c/kg.
Other guides all finished in positive positions with rises for the week of between 54c (19 micron) and 33c (18 micron).
The passed-in rate blew out to 21.2pc on the second trading day, with main buyers Morris, Westcoast and Techwool joined by Chinese-owned Tianyu Wool.
This week the WWC is scheduled to offer 10,660 bales, a 54pc jump over the 6918 it offered last week, which also indicates the WWC wool market's disdain for suggestions wool exports to China might be under threat.
Australian Wool Innovation (AWI) chief executive officer, Stuart McCullough, this week said the company was not aware of any threat from China to wool imports.
"For more than 50 years Australian wool has been sold into China, it is an indication of the strong and enduring relationship," Mr McCullough said.
"AWI has had no indication that we would be affected by any possible rule changes in China.
"AWI continues to work closely with our industry partners in China to maintain our good relationship there.
"It is worth noting that there are things that are in our control - the industry to industry relationship is well within our control - (but) government to government relationships are not within our control, so we can only affect change on the things that we have some say in," Mr McCullough said.
China is Australia's biggest wool customer for many reasons - including its size, climate and growing affluence - and it now consumed half of our wool clip domestically, he said.
As reported in Farm Weekly, AWI recently launched a novel online and social media marketing campaign for Australian wool specifically targeting Chinese consumers.
Regional Development, Agriculture and Food Minister Alannah MacTiernan described suggestions wool might be the next commodity banned as "extremely disappointing".
She said the State government had worked very hard to "preserve" a strong relationship with China but there had been a "breakdown" in the relationship at a Federal level.
The Federal government "really needs to realise" just how important having a strong relationship with China is not only to the welfare of WA, but to the nation, Ms MacTiernan said.
