30 Oct 2012

China drives lift in wool prices

6:24 am on 30 October 2012

Wool exporters say China is driving a lift in wool prices seen in recent weeks.

Wool Exporters Council president John Dawson says the strong wool market indicator, which covers most of the wool New Zealand trades, has lifted 10% - 20% from a low point, to almost $4 per kg.

But he says it's still well short of the prices cross-bred wool were fetching a year ago.

Mr Dawson thinks the lift in demand from China will slow down once wool stocks there are replenished, so he's predicting a steady market until the end of the year rather than any further significant rise.