Wool prices fall to eight-month low

Australia: Wool prices in Australia fell to an eight-month low after China, the world’s biggest buyer of the fibre, stalled purchases because of the SARS epidemic, traders and analysts said.

Retail sales of knitwear and suits in China, which buys about 40% of Australia's wool exports, or A$840 million of the fibre, have dropped since April as concern about the outbreak of severe acute respiratory syndrome deters people from visiting department stores and other crowded areas.

Wool prices have slumped 18% this year as consumer confidence in the US, the biggest market for woollen apparel, slipped to a nine-year low in March, and retail sales slumped in Europe, Australia's second-biggest wool market behind China.