Australian wool prices surge ahead of unprecedented Chinese New Year break
Australian wool prices have surged to their highest level since 2019, with the Eastern Market Indicator (EMI) rising 16 cents this week to 1,693 cents per kilogram. This surge comes as the industry prepares for an unprecedented week-long break for the Chinese New Year, a first in the industry's history. The break, requested by China, will see wool auctions paused from February 14 to 24, 2026.
China's dominance in the wool market continues, with its market share now at 88.4% of Australian wool exports. This is despite the rising Australian dollar, which has been a factor in the solid price gains. The industry's benchmark EMI has risen 152 cents per kilogram (10%) since the start of the year, with Australian Wool Innovation (AWI) attributing this to the dwindling supply of wool in Australia.
AWI's general manager international, Stephen Hill, highlighted the positive demand outlook, noting that wool is in fashion and seeing demand across various categories, including men's suiting and emerging markets like sportswear. He also mentioned the boom in wool-cotton blends, even with low percentages, as they are in mass market areas and selling volume.
The break for the Chinese New Year is a significant development, as it demonstrates the industry's respect for cultural and holiday traditions. It also highlights the importance of China as a major client, with over 85% of wool exports going to China in the last 15 years. The break provides an opportunity for the industry to recharge and maintain its strong position in the market.
