Merino Wool
Merino wool is the fleece of the Merino sheep, the finest of the commercial wool breeds. The fibre is a protein, keratin, built as overlapping scales around a cortex, which is what gives wool its elasticity, its ability to absorb moisture vapour without feeling wet, its natural crimp and its resistance to flame. Merino is the fine end of the wool trade and it goes into worsted suiting and tailoring, knitwear, next to skin baselayers and performance sportswear, blankets and fine hosiery. Coarser and shorter Merino lines go into woollens, felt and blending. Wool is traded greasy, scoured or as combed top, and the same fleece can move through all three states before it reaches a spinner.
Listed merino wool markets
Each line is a grade at a delivery point. Open one for its full specification and terms.
Grades
Merino is contracted on the instrument certificate issued by an accredited wool testing house, with mean fibre diameter the dominant price term and yield the term that converts a greasy weight into a clean one.
Fibre identity and species
4 grades
| Grade | Definition |
|---|---|
| Breed and fibre sourceDeclared | Merino sheep fleece. Crossbred, Corriedale, Romney and other apparel and carpet wools are separate trades and are never sold under a Merino description. |
| Fleece typeDeclared | Fleece, pieces, bellies, locks, crutchings or oddments. The skirting classification is as much a part of the description as the micron. |
| Processing stateDeclared | Greasy, scoured, carbonised, combed top or noil. Each state has its own weight basis and its own contract. |
| Shearing and preparationDeclared | Whether the clip was shorn, shed collected or pulled, and whether it was classed to a national clip preparation code. |
Fineness and dimensional measurement
9 grades
| Grade | Definition |
|---|---|
| Mean fibre diameterMicrons | The defining price term in the wool trade. Measured by laser scan or airflow on a core sample under the IWTO test methods and reported on a certificate. |
| Coefficient of variation of diameterPercentage | How evenly the fibres sit around the mean. A tight distribution spins finer at the same average micron. |
| Comfort factorPercentage of fibres below the stated micron threshold | Predicts prickle against skin. The contract term for baselayer and next to skin lots. |
| Coarse edge micronMicrons | The upper tail of the diameter distribution, which is where the prickle actually comes from. |
| Staple lengthMillimetres | Measured on the greasy staple. It sets whether the lot combs into worsted top or drops into the woollen system. |
| Staple strengthNewtons per kilotex | Tensile strength of the staple. A break in the staple caused by illness or feed stress destroys top making value. |
| Position of breakPercentage along the staple, tip, middle or base | Where a weak staple fails, which determines the length of the fibre that survives combing. |
| CurvatureDegrees per millimetre | The crimp measurement. It drives bulk, loft and the handle of the finished cloth. |
| Predicted hauteurMillimetres | The forecast mean fibre length in the top, calculated from length, strength and position of break. It is what a topmaker actually buys. |
Cleanliness, yield and contamination
8 grades
| Grade | Definition |
|---|---|
| Vegetable matter contentPercentage by mass, maximum | Burr, seed, straw and pasture material, determined by chemical digestion or by carding trial. It is the cost the topmaker carries and it is deducted in the price. |
| YieldPercentage, on a stated basis | Clean fibre recovered from the greasy or raw weight, measured against a defined regain and grease basis. It converts a greasy price to a clean price and it is the number the trade actually settles on. |
| Grease and suint contentPercentage by mass | The natural wax and salt fraction removed in scouring. |
| Regain and moisturePercentage, at the standard atmosphere | Measured under ISO 139. Fibre is bought at a contractual regain, not at whatever it weighs on the day. |
| Dark and medullated fibreCount per unit mass, maximum | Pigmented or hollow fibres that will not take dye evenly. Contracted on any lot destined for pale shades. |
| ContaminationDeclared, zero tolerance where specified | Polypropylene twine, synthetic packaging and foreign fibre. It is the single most damaging defect in a bale and the contract treats it as such. |
| Colour and brightnessY, Z and Y minus Z tristimulus values | Measured instrumentally on a scoured sample. It sets which pale and pastel shades the lot can reach. |
| Scoured yield, IWTO clean washing yieldPercentage | The contractual clean yield basis used in the wool trade, stated with the regain and the residual grease and ash allowances. |
Delivery, packing and certification
11 grades
| Grade | Definition |
|---|---|
| Baling and packingDeclared, with the bale weight and the pack material | Pressed bales, hydraulic bales, hanks or bundles, with the wrapping named. Synthetic wrap is excluded where contamination is a contract term. |
| Marking and lot identityDeclared | Bale marks, lot number and the test certificate number, tied to the sample retained by both parties. |
| Test certificateCertificate, with the issuing house | An independent test house certificate is the contract document in this trade and the lot is settled against it. |
| Sampling methodDeclared | Core sampling, grab sampling or full lot testing, with the number of bales sampled written into the contract. |
| Fumigation and phytosanitary treatmentDeclared, with the certificate | Named where the destination requires it for a plant or animal origin fibre. |
| CertificationCertificate, with the scheme and the certificate number | Organic, Responsible Wool, Responsible Alpaca, Responsible Mohair, Fairtrade or a private buyer standard, named on the contract when it is contracted. |
| Clip or crop yearDeclared | The shearing season or the harvest year, recorded with the lot. |
| Clip preparation codeDeclared | The national wool clip preparation standard the classer worked to, recorded on the bale. |
| Bale branding and lot buildDeclared | Bale marks, the classer registration and the lot the bales were built into for sale. |
| Mulesing statusDeclared | Non mulesed, ceased mulesed, mulesed with pain relief or mulesed. A hard contract term in most European and North American supply chains. |
| Auction or forward sale basisDeclared | Whether the lot moves through an auction catalogue or on a direct forward contract, and which set of trade rules governs it. |
Grades outside this list trade on request. Send us the contract specification you work to and we will price against it.
Locations
| Country | Region | We trade it as |
|---|---|---|
| Australia | New South Wales, Victoria, Western Australia, South Australia and Tasmania | Origin and destination |
| New Zealand | the South Island high country and Otago | Origin and destination |
| South Africa | Eastern Cape, Free State and Western Cape | Origin and destination |
| Argentina | Patagonia, Chubut, Santa Cruz and Rio Negro | Origin and destination |
| Uruguay | Salto, Tacuarembo, Durazno and Florida | Origin and destination |
| Chile | Magallanes and Aysen | Origin and destination |
| Falkland Islands | East and West Falkland | Origin and destination |
| China | Inner Mongolia, Xinjiang and Gansu | Origin and destination |
| United Kingdom | Scotland and northern England | Origin and destination |
| Spain | Extremadura and Castile and Leon | Origin and destination |
| France | Occitanie and Nouvelle-Aquitaine | Origin and destination |
| Peru | Puno and Junin | Origin and destination |
| United States | Wyoming, Montana, Texas and Idaho | Origin and destination |
| Italy | Biella and Prato, the worsted and woollen spinning base | Destination |
| Czech Republic | the Moravian combing and topmaking cluster | Destination |
| India | Punjab, Haryana and Rajasthan | Destination |
| Vietnam | Ho Chi Minh City and Binh Duong | Destination |
| Turkey | Bursa, Usak and Istanbul | Destination |
| Japan | Aichi, Osaka and Gifu | Destination |
| South Korea | Gyeonggi and Daegu | Destination |
| Germany | Baden-Wurttemberg and Bavaria | Destination |
| Portugal | Covilha and the Serra da Estrela textile base | Destination |
| Romania | Brasov and Prahova | Destination |
| Bulgaria | Sliven and Gabrovo | Destination |
| Lithuania | Kaunas and Vilnius | Destination |
| Mexico | Puebla and Tlaxcala | Destination |
| Indonesia | Central Java and West Java | Destination |
| Thailand | Bangkok and Samut Prakan | Destination |
| Bangladesh | Dhaka and Chattogram | Destination |
| Egypt | Alexandria and the Delta | Destination |
| Morocco | Casablanca and Fez | Destination |
| Canada | Ontario and Quebec | Destination |
Origins and destinations outside this list trade on request. We are not limited to the locations shown here.
Timing
Harvest is when the fibre is shorn, cut or retted at origin. Arrival is when a shipment from that origin typically lands in a consuming market. The gap between them is classing, testing, baling and the voyage.
HarvestArrival
| Origin | J | F | M | A | M | J | J | A | S | O | N | D | Window |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Australia | Harvest and arrival | Harvest and arrival | Harvest and arrival | Arrival | Arrival | Harvest | Harvest | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest Aug to Mar, arrival Oct to MayShearing runs across the states through the year, with the heaviest offering from spring into autumn. Auction catalogues run weekly, so supply is continuous rather than seasonal in the way a crop is. | ||
| New Zealand | Harvest and arrival | Harvest and arrival | Arrival | Arrival | Harvest | Harvest | Harvest and arrival | Harvest and arrival | Harvest Sep to Feb, arrival Nov to AprMain shear from spring into summer, with pre-lamb shearing spreading the offering. | ||||
| South Africa | Arrival | Harvest | Harvest | Arrival | Arrival | Harvest | Harvest | Harvest and arrival | Harvest and arrival | Arrival | Harvest Apr to Nov, arrival Jun to JanTwo shearing windows, spring and autumn, with the Cape auction season running from August through June. | ||
| Argentina | Harvest and arrival | Arrival | Arrival | Arrival | Harvest | Harvest | Harvest and arrival | Harvest Oct to Jan, arrival Dec to AprPatagonian shearing from October through January, with the clip moving out through Buenos Aires and Puerto Madryn. | |||||
| Uruguay | Arrival | Arrival | Arrival | Harvest | Harvest | Harvest and arrival | Harvest and arrival | Harvest Sep to Dec, arrival Nov to MarSpring shearing, with the clip classed and offered from October. | |||||
| China | Harvest | Harvest | Harvest and arrival | Arrival | Arrival | Arrival | Harvest May to Jul, arrival Jul to OctA single summer shear in the northern grasslands, largely absorbed by the domestic system. |
Windows outside this pattern trade on request, including carry, forward positions and stock already sitting in a destination warehouse.
Customs, packing and contract terms
Indicative terms for merino wool. Tariff classification is the importer’s responsibility and limits change, so confirm both against the destination customs authority and the current regulation before you fix a contract.
- HS heading5101.11 Greasy shorn wool, not carded or combed
5101.21 Degreased wool, not carbonised
5105.29 Wool tops and other combed wool - PackingCompressed bales. Jute and sisal at 180 kg to 250 kg, animal fibre at 100 kg to 300 kg pressed under hessian or polypropylene wrap, silk in cartons. Bale identification must carry the lot and the test certificate number.
- Container loading20ft: 10 t to 18 t depending on bale density. Wool, cashmere and other animal fibres are volume limited well before weight.
- Contract and arbitrationIWTO Blue Book terms with IWTO core test certificates and arbitration under IWTO rules for wool and fine animal hair. Plant fibres on the contract of the origin trade association or on CIF terms with arbitration at the named seat.
- Destination limitsPhytosanitary certification for plant fibres under Regulation 2016/2031 and veterinary health certification for animal fibre under Regulation 2016/429 and Regulation 142/2011. EU REACH restrictions on residual dyes, biocides and azo colourants. CITES prohibits trade in shahtoosh and controls vicuna.
Common questions
What grades of merino wool does SIP Global trade?
We quote 32 published grades of merino wool, including Breed and fibre source - Declared, Fleece type - Declared, Processing state - Declared, Shearing and preparation - Declared, Mean fibre diameter - Microns and Coefficient of variation of diameter - Percentage. Every grade is tied to a delivery point and a settlement route. Grades outside the published list are priced on request.
How is merino wool graded?
Merino is contracted on the instrument certificate issued by an accredited wool testing house, with mean fibre diameter the dominant price term and yield the term that converts a greasy weight into a clean one. Grading runs on 4 systems: Fibre identity and species, Fineness and dimensional measurement, Cleanliness, yield and contamination and Delivery, packing and certification.
Where does SIP Global trade merino wool?
We trade merino wool in Australia, New Zealand, South Africa, Argentina, Uruguay, Chile, Falkland Islands and China and 24 further markets. Origins and destinations outside this list trade on request. We are not limited to the locations shown.
When is merino wool harvested and when does it arrive?
Typical windows are Australia: harvest aug to mar, arrival oct to may; New Zealand: harvest sep to feb, arrival nov to apr; South Africa: harvest apr to nov, arrival jun to jan; Argentina: harvest oct to jan, arrival dec to apr; Uruguay: harvest sep to dec, arrival nov to mar. Harvest is when the lot is taken at origin, arrival is when a shipment from that origin lands in a consuming market. Windows outside this pattern, including carry, trade on request.
What is the HS code for merino wool?
Merino wool is normally classified under HS 5101.11 (greasy shorn wool, not carded or combed), HS 5101.21 (degreased wool, not carbonised) and HS 5105.29 (wool tops and other combed wool). The heading follows the form the goods are in at the border, and national tariffs extend it beyond six digits, so confirm the full line with the destination customs authority before you fix a contract.
How do I get a price for merino wool?
Send the grade, the origin and the delivery window to the SIP Global desk. That is enough for a trader to come back with a level and a settlement route. 1 listed merino wool market is published on this page, each with its full specification and terms. We take both sides, physical and financial, prompt to long dated.
Standards and data sources
The grading language on this sheet follows published standards. Trade volumes and tariff lines are public record. Verify anything here against the source.
- ISOInternational Organization for Standardization
- ASTM InternationalMaterials and test method standards
- IWTOInternational Wool Textile Organisation test methods
- IPPCInternational Plant Protection Convention phytosanitary measures
- UN ComtradeOfficial international trade statistics by HS code
- ITC Trade MapBilateral trade flows and tariff data
- FAOSTATFAO production and trade series for agricultural commodities
Price this with our desk
Grade, origin and window if you have them. If what you are carrying does not fit the sheet above, describe it in your own words and a trader will take it from there.