Australian wool prices have seen a notable increase in the period leading up to the Chinese New Year, a significant event marked by the industry's first-ever week-long recess for the holiday. This development occurs as China solidifies its position as the dominant buyer of Australian wool, importing a substantial portion of the nation's output. The price hike signals a robust market despite the upcoming pause in trading.
Market Activity Preceding Chinese New Year
Leading up to the Chinese New Year, wool markets demonstrated continued momentum. The Eastern Market Indicator (EMI) experienced an increase, reflecting a sustained upward trend. Specific wool types, such as the 17.0 MPG, 18.0 MPG, and 19.0 MPG, also saw price gains.
The Eastern Market Indicator (EMI) closed at 1,693¢/kg clean, marking a rise of 16¢.
The Northern indicator moved up 20¢ to 1,737¢/kg clean.
Specific microns also saw increases: the 17.0 MPG rose 18¢ to 2,276¢, the 18.0 MPG gained 26¢ to 2,191¢, and the 19.0 MPG lifted 12¢ to 2,083¢.
Read More: Clarkson's Farm Star Harriet Cowan Hurt in Farm Accident
This upward movement has occurred despite the upcoming recess, which will see wool auctions pause until February 24, with sales resuming the week of February 23.
China's Dominance in Australian Wool Exports
China is the principal buyer of Australian wool, accounting for approximately 88.4% of Australian wool exports. This concentration of demand underscores China's critical role in the Australian wool industry.
This significant reliance on a single market raises questions about the industry's long-term stability and diversification strategies.
Historical Price Trends and Market Performance
Recent data indicates a substantial rise in wool prices over the past year.
Wool prices rose by 9.86% in the past month.
Compared to the same time last year, prices are up by 42.03%.
The current price of wool reached 1,693 AUD/100Kg on February 13, 2026.
Historically, wool prices reached an all-time high of 2,101.00 in September 2018.
Industry Dynamics and Future Outlook
Discussions among industry leaders highlight both investment and grower concerns.
Read More: Manly Sea Eagles Young Players Show Promise in Pre-Season Game
Chinese investment in wool processing facilities, including those with automated robotics, has been noted, suggesting a commitment to modernizing production.
However, concerns about Australia's decreasing wool supply and its impact on future prices, alongside cost pressures on young growers, remain key topics.
Agreements are in place for reciprocal visits between Australian and Chinese wool industry leaders to foster collaboration.
Market analysis reports indicate that global demand for wool products, particularly garments and textiles, continues to drive the market. However, competition from synthetic fibers such as polyester, acrylic, and nylon presents a challenge.
Expert Analysis
Stephen Hill, AWI's general manager international, stated that wool auctions would take a week-long break for the Chinese New Year period, describing it as an "industry-first." This indicates a significant acknowledgment of China's holiday by the Australian wool trade.
Read More: Mango Farmers Learn to Use Fewer Chemicals for Better Fruit
"Wool auctions will now take a break until February 24, with the industry respecting a request from China for a week off to celebrate Lunar New Year."
Conclusion
The Australian wool market is experiencing a price increase as it enters an unprecedented week-long recess for Chinese New Year. China's overwhelming dominance as an importer of Australian wool remains a central feature of the market. While investment in processing and a strong demand for wool products are positive indicators, issues such as declining supply and grower cost pressures require continued attention. The industry's decision to observe the Chinese New Year with a trading break highlights the deep economic ties between the two nations within the wool sector.
Sources Used:
ABC News: Details the price jump and the unprecedented Chinese New Year break, highlighting China's dominant import share.
Link: https://www.abc.net.au/news/2026-02-14/wool-price-rising-ahead-of-chinese-new-year-break/106339658
Mecardo: Provides specific data on market indicators and price movements leading up to the Chinese New Year recess.
Link: https://mecardo.com.au/market-momentum-ahead-of-chinese-new-year/
Trading Economics: Offers historical and recent price data, showing significant year-on-year and monthly price increases for wool.
Quality Wool: Confirms the market indicators, the EMI's position, and the upcoming recess for Chinese New Year, providing a weekly market summary context.
Sheep Central: Discusses Chinese investment in wool processing and outlines concerns from Australian wool growers regarding supply and costs.
Link: https://www.sheepcentral.com/chinese-wool-investment-lifts-and-growers-outline-price-concerns/
ABC News (September 2025 article): Reports on a previous period of sharp price increases driven by accelerating demand from China and notes China's substantial share of Australian wool imports.
