Australia's pillar wool sector is reaping the rewards from record-high prices as it rides on consumption upgrades and other strengths in its biggest market, China, according to latest figures.
The Australian wool market hit its strongest level in seven years, reaching an industry index of nearly A$20 ($14) a kilogram by the end of May, according to Australian Wool Innovation, the main nonprofit group providing research for the sector.
AWI said the rise "marks one of the strongest periods of sustained improvement seen in recent years".
Most Australian wool is high-quality fine and superfine fiber shorn from merino sheep, with the raw material exported to China for processing into wool apparel products like sweaters, suits and coats.
After several years trading at levels many considered unsustainable for production, the Australian wool market is "increasingly responding to tightening supply, reduced sheep numbers and growing recognition of wool's natural fiber credentials", AWI said.
