Australian wool prices have increased, with the industry's benchmark Eastern Market Indicator (EMI) rising 16 cents this week to 1,693 cents per kilogram. This marks its highest level since 2019.
Since the beginning of the year, the EMI has risen 152c/kg (10 percent). Australian Wool Innovation (AWI) noted that these price gains occurred despite an increase in the Australian dollar.
China's market share of Australian wool exports has grown to 88.4 percent.
A contributing factor to the price rise is Australia's decreasing wool supply, which has fallen by the equivalent of South Africa's entire wool clip over the past two years.
Chinese New Year Break
Wool auctions will observe a week-long recess for the Chinese New Year, a first for the industry. Stephen Hill, AWI's general manager international, stated that China's significant role as a destination for over 85 percent of Australian wool exports led to this decision.
Sales are scheduled to resume on February 24.
Demand Overview
Mr. Hill observed positive demand during a recent trip to China. Wool is being utilized in traditional sectors like men's suiting and in emerging markets such as sportswear.
Demand for wool is present across various categories, including wool-cotton blends, which are experiencing increased volume sales in mass markets.