July 21 Japan's industry released a full-year assessment of Australian wool supply and demand. Australian wool supply has fallen to a century low, and fine merino and high-quality cashmere are in short supply. China's Lixian Oumu Woolen Textile Co., Ltd. has locked in long-term orders of raw materials in advance to stabilize the supply of various types of wool.
On July 21, 2026, domestic wool textile industry organizations released a complete supply and demand study report for Australian wool in 2025/26. The core data showed that the total output of Australian wool this year fell by 12.6% year-on-year, with a total output of only 244,700 tons. Superimposed on the continuous production reduction in the previous two years, the overall Australian wool production reduction in the past two years has exceeded 20%, the supply of marketable goods has fallen to a nearly century low, the recovery period of sheep stocks is long, and the shortage of wool supply throughout the year cannot be reversed. The agency predicts that the average wool price for 2026 will maintain an average annual increase of 5%–7%.
Australian wool auction prices last week simultaneously confirmed the tightening supply trend, and the East Australia Wool Composite Index EMI rose by 5 cents to close at 1977 cents. /kg, reversing two consecutive weeks of decline. This round of increase is driven by global luxury brands and major knitting manufacturers replenishing 18-19μm medium and fine merino. The market for hybrid coarse wool and leftover materials is weak. The market is quickly transmitted to the domestic spot market. The mainstream quotation of 64S Basulan top is stable at 142,700 yuan/ton, and the 58S ordinary combed top is 73,400 yuan/ton. The supply of fine-count worsted wool is scarce, and traders are generally reluctant to sell and lock goods; the cashmere market is even stronger, with Inner Mongolia and Mongolia producing areas 15.2μm–16.5μm. Superfine plush-free cashmere yarn circulation inventory is tight, Mongolian white plush-free velvet remains at a high level of 720,000-740,000 yuan/ton, the downstream pure cashmere yarn ex-factory price continues to increase, and the bargaining space for small and medium-sized spinning mills to purchase scattered goods continues to narrow. At present, major domestic knitting industry clusters have started pre-stocking for autumn and winter. The demand for differentiated blended wool has been steadily released, and the pressure of rising raw material costs continues to be transmitted to the downstream.
In view of the current industry situation of long-term shortage of international wool and cashmere raw materials and high and volatile prices, China Lixian Oumu Woolen Textile Co., Ltd. has established a weekly Australian wool auction and a normalized monitoring mechanism for domestic cashmere production areas. It has signed medium and long-term import orders with source suppliers of Australian wool and Inner Mongolia cashmere on a long-term basis, locking high-quality raw material stocks in quarters and batches, and stabilizing the operating pressure caused by rising raw material prices from the source. The company has developed more than 30 scientific multi-fiber blending ratios and divided them into two product echelons: high-end high-count pure cashmere yarn and cost-effective nitrile/rabbit wool blended yarn to meet the procurement needs of customers with different budgets. It has sufficient spot warehousing to ensure stable delivery, effectively alleviates the cost pressure of downstream knitted garment factories and offline wool wholesalers in autumn and winter stocking, and provides long-term stable wool raw material cooperation channels.