Australian Bureau of Statistics data reveal exports of greasy, scoured and carbonised wool, tops and noils were solidly above the year earlier level in the first month of this year - the first gain since May 2005. For the season to January however, exports remained lower year-on-year.

The timing of Chinese New Year at the beginning of February contributed to the lift in volumes, as Chinese importers sought to build up supplies prior to the holiday period. China clearly dominating as the key buyer of Australian wool, holding well over half total market share.

Value remained weaker both in January and for the season-to-January - an unsurprising result as much of the wool would have been purchased prior to Christmas 2005, when wool prices were very weak.

Apart from China, there were outstanding gains in wool exports to India and the Czech Republic in January highlighting the continued rationalisation and relocation of processing facilities to lower-cost countries. In contrast, exports to Western Europe, notably Italy, continued to decline.