Welcome to follow the real-time updates of RH and the industry
26
2026
-
01
Bulletin on the Rising Price Trend of Cashmere and Wool Markets at Home and Abroad in Early 2026
In early 2026, the prices of global cashmere and wool raw materials have risen simultaneously, with adjustments in the supply-demand pattern.
In early 2026, the prices of global cashmere and wool raw materials have risen simultaneously, with adjustments in the supply-demand pattern. Based on core market trends, the bulletin is as follows:
I. Significant Rising Price Trend in the Global Market
(I) Wool Market Prices Hit a Decade-High
International wool prices have reached a ten-year high. Driven by strong demand from European textile manufacturers and North American luxury brands, the price growth is well-supported. Meanwhile, the European market has imposed stricter environmental protection and traceability requirements, leading to a premium of 15%-20% for eco-certified wool compared to conventional products.
The Southern Hemisphere market is also heating up. Affected by prolonged drought, Australia's wool supply has tightened further, while New Zealand wool prices have generally risen amid robust orders from China and India. New Zealand has allocated wool import tariff quotas to China under the free trade agreement to stabilize bilateral trade flows. Additionally, Uruguay, an emerging wool exporter, has become an alternative source for European buyers amid tight supply from traditional markets, with its exports to Europe growing steadily.
(II) Cashmere Market Sees Rising Volume and Price with Obvious Structural Differentiation
The cashmere market has witnessed rising volume and price, with distinct structural differentiation. Mongolia is promoting the transformation of cashmere deep processing through industrial policies, gradually shifting its exports from raw cashmere to high-value-added semi-finished products, which has adjusted the global cashmere supply chain structure and pushed up the procurement cost of high-quality raw materials. Italy, a core cashmere processing hub in Europe, has sustained strong demand for high-end fine cashmere (14-16 microns). Local luxury brands rely heavily on high-quality cashmere for high-end product lines, and their preference for sustainable cashmere is becoming increasingly prominent, further driving demand for core raw materials. In the US market, affected by fluctuations in trade policies, import bookings for cashmere products have experienced short-term volatility, but the demand fundamentals for high-end cashmere remain stable due to its alignment with the sustainable fashion trend, indirectly boosting demand in the raw material market.
In the long run, the upward trend of cashmere prices is clear. Due to scarcity and rigid demand, high-end products have minimal room for correction. In the short term, slight fluctuations may occur after the Spring Festival, but the overall market remains stable. This trend is highly consistent with the global cashmere supply-demand contradiction and industrial policy orientation, indicating sustained long-term prosperity in the industry.
II. Analysis of Core Drivers for Price Increase
(I) Tight Supply Side Restricts Market Supply
The global supply side is generally tight. Sheep inventories have declined in major producing countries, and wool purchases and inventories in the UK have dropped significantly. Australia's wool production is constrained by drought, with inventory levels falling to a five-year low. Cashmere production in Central Asian countries decreased due to epidemics in early 2025, and although breeding volume is recovering, the short-term supply gap is hard to fill. In addition, Portugal has recently gained access to the Chinese wool market, but its exports are restricted by strict quarantine requirements, including compliance with WHO epidemic prevention standards and full traceability management, limiting its short-term supply contribution.
(II) Demand Upgrade and Regional Demand Outbreak
Global demand continues to upgrade, with India and Europe emerging as core growth poles. India's wool textile industry has seen growing imports of scoured wool driven by domestic consumption and export expansion. Europe's demand for high-quality cashmere and wool products is increasing steadily, with Germany and France accounting for a major share of regional imports. Geopolitical factors and resource security needs have also prompted European enterprises to increase strategic reserves of wool raw materials, further amplifying market demand.
(III) Policies and Industrial Transformation Reshape the Pattern
Policies and industrial transformation are reshaping the global market pattern. Mongolia's "Platinum Program" aims to raise the cashmere refined processing rate, shifting exports from raw cashmere to semi-finished products and increasing procurement costs for Chinese enterprises. The EU's new regulations require wool products to meet carbon footprint standards from 2027, forcing upstream and downstream enterprises in the industrial chain to upgrade production processes, which further pushes up the production and circulation costs of European wool products, with price transmission effects gradually emerging in the raw material market. In addition, the United States has adjusted its cashmere import tariff policy, reducing tariffs on high-end cashmere from Central Asia to stimulate export growth from the region to the US market.
III. Industry Suggestions and Outlook
High-price operation has become the market norm. Enterprises are advised to focus on three aspects: first, seize the post-holiday price adjustment window to lock in high-quality resources; second, focus on high-end transformation to increase product added value; third, optimize supply chain layout to prevent potential risks.
In the long run, the industry will enter a high-growth cycle. Enterprises that control high-quality raw material resources and possess innovation capabilities will gain a competitive advantage.
Data Sources: Farmers Weekly, Nanjing Wool Market, etc.
Update Time: January 23, 2026
Related news