China raw wool imports for January and February were nearly eight per cent higher than the same period for the past eight years.
Imports to China from Australia rose 11 per cent during these months, New Zealand was up 30pc and South Africa 4pc, while imports from Uruguay were down 30pc.
National Council of Wool Selling Brokers of Australia chief executive Chris Wilcox said it was a surprise climb in demand from China.
“A major Chinese buyer had a dispute with the New Zealand industry and ceased buying for several months last year,” Mr Wilcox said.
“That dispute was resolved recently which might help explain why there was a 30pc increase in imports by China.”
Mr Wilcox said while China’s raw wool imports in recent months point to increased demand by early stage processing and spinning mills, the latest data on China’s exports of wool products was pessimistic.
In the first two months of 2016, China’s exports of wool top were 5pc higher than a year earlier and were the highest in the past eight years, however exports of wool yarn, fabric and clothing were below earlier levels.
“I suspect, after cutting back on raw wool purchase in the back half of last year, China stocks have run low and we are seeing them replenish those reserves,” Mr Wilcox said.