Wool Prices Surge Before Unprecedented Chinese New Year Break

Rowan Ashford

Published: February 13, 2026 11:02 PM ET

Wool Prices Surge Before Unprecedented Chinese New Year Break

Australian wool prices are experiencing a significant increase as the industry prepares for its first week-long break for the Chinese New Year. The Eastern Market Indicator (EMI), which serves as a benchmark for the sector, has risen by 16 cents this week, reaching 1,693 cents per kilogram. This marks the highest market level since 2019.

Current Market Trends

Since the beginning of the year, the EMI has surged by 152 cents per kilogram, equating to a 10 percent rise. According to Australian Wool Innovation (AWI), “solid price gains” persist despite the strengthening Australian dollar. Notably, China’s share of Australian wool exports has increased to 88.4 percent.

Supply Challenges Affecting Prices

One of the primary factors contributing to rising wool prices is Australia’s declining production levels. AWI highlighted that over the past two years, wool production in Australia has fallen by an amount equivalent to the entire South African wool clip.

Chinese New Year Break

AWI’s general manager, Stephen Hill, announced that wool auctions will take a week-long pause to observe the Chinese New Year, a first for the industry. “For the past 15 years, China has become the dominant destination for Australian wool, accounting for over 85 percent of exports,” he stated. This break allows buyers to relax during the most significant holiday in China.

Resumption of Sales

Wool sales are scheduled to resume on February 24. Hill recently returned from a month-long trip to China and expressed optimism about future demand. He noted that wool is experiencing a resurgence in traditional markets, such as men’s suiting, as well as in emerging sectors like sportswear.

Demand for Wool

Hill emphasized the growing popularity of wool, stating, “Wool is definitely in fashion, and we’re seeing demand across the board.” He mentioned that various new products are now incorporating wool, particularly in blends with fabrics like cotton. Even small percentages of wool in these blends are making significant impacts in mass market sales.