TİGEM's 60,000 Kg Merino Wool Auction

TİGEM is set to sell 60,000 kilograms of merino wool via a sealed‑bid auction, a move that will closely influence Turkey's domestic textile raw material supply and price dynamics.

Strategic Significance of the Merino Wool Auction

As one of Turkey's largest textile raw material suppliers, TİGEM will leverage this sale to both utilize state‑supported production capacity and boost market liquidity.

Financial Terms of the Auction

■Benchmark price: 50 TRY/kg

■Estimated total value: 3,000,000 TRY

■Temporary guarantee: 150,000 TRY (equivalent to 5% of the auction amount)

■Fixed guarantee: To be set at 10% of the auction amount

Market Participation and Potential Pricing

The auction will take place on Tuesday, July 28 at 14:00 before TİGEM's Purchase‑Sale and Auction Committee. If no bids are received or the offered prices are deemed unsuitable, the sale will shift to a negotiation format.

Risk and Opportunity Assessment

■Supply shock: Anticipated high supply could exert downward pressure on short‑term wool prices.

■Exchange rate impact: Since a large share of the wool is destined for export, fluctuations in the TRY‑USD pair may affect profit margins.

■Short‑term liquidity: The temporary guarantee and guarantee ratios will shape participants' risk appetite.

■Alternative sourcing: Higher price demands may trigger a shift toward imported wool.

Seda Çetin – Market Pricing and Data Terminal Manager: The merino wool auction is a pivotal point in Turkey's raw material supply‑demand balance. Should prices stay below the 50 TRY/kg benchmark, domestic producers' margins will compress, potentially increasing reliance on imports. Moreover, the guarantee requirements of 5‑10% will test not only bidders' financial capacity but also their resilience to market volatility. Over the longer term, transparent auctions like this enhance price discovery mechanisms, sustaining Turkey's competitive edge in textile exports.