Wool

The sheep fiber of fine apparel, auctioned in Australia in micron grades.

Overview

Australia dominates fine wool, with merino fleece under 20 micron the premium apparel segment, auctioned at centers such as Sydney and Melbourne, priced in Australian cents per kilo clean, with the eastern market indicator the benchmark. China buys most of it, combs and spins it into yarn and cloth, so Chinese textile demand and Australian drought, which forces flock liquidation, set the cycle. Fine micron premiums widen when apparel demand is strong, broader crossbred grades follow carpet demand, and synthetics cap rallies. Animal welfare rules affect access to European brands, and production is small versus cotton, a niche luxury fiber priced at auction.