The headline numbers for China's wool textile trade look strong, but the real story is a quiet reallocation of profit along the supply chain. According to China Customs data, imports and exports of wool textile raw materials and products reached USD 11.7 billion (about RMB 80.5 billion) in the first eight months of 2026, up 12.9% year on year. That is a solid growth rate among textile categories, yet the figure that deserves attention is the 41.73% year-on-year rise in average import prices, which alone explains most of the import value expansion.
Imports: Volumes Edge Up, Prices Soar
Start with the import structure. In January-August, imports of wool textile raw materials and products totaled USD 3.14 billion (RMB 21.6 billion), up 33.67% year on year, nearly five times the export growth rate. Within that, imports of wool and initially processed wool reached USD 1.87 billion, up 48.19%, while import volumes rose only 4.56% to 213,000 tonnes. The gap between value and volume growth makes clear that this import expansion was driven almost entirely by prices.
The average import price stood at USD 8.77 per kilogram, up 41.73% year on year, meaning domestic mills are paying more than 40% more for raw material than a year ago. For early-stage processing and worsted spinning enterprises, for which wool is the primary input, this is not a number that can be absorbed through administrative cost cuts. Cost pressure is being transmitted from raw materials to yarn, fabric and garments, but bargaining power differs at each stage.
Notably, in August alone, the average import price of wool was USD 8.96 per kilogram, down 7.5% month on month, and the average import price of other animal fibers also fell 7.5% month on month. The rapid upward momentum has eased somewhat, suggesting the peak of the international wool cycle may have passed, though absolute prices remain elevated. For buyers, this looks more like a window than a turning point.
Exports: Price Gains Offset Volume Losses
The export logic runs opposite to imports. In January-August, exports of wool textile raw materials and products reached USD 8.56 billion (RMB 58.9 billion), up 6.82% year on year, showing a clear divergence between volume and price. Except for wool woven garments, whose export volume fell 9.49% year on year to 11.06 million pieces, export volumes of other major wool textile categories all grew.
On the price side, export prices of initially processed and mid-to-downstream wool textile products fluctuated within a range of -5% to 6% year on year, broadly moderate. The standout was wool woven garments, whose average export price reached USD 48.65 per piece, up 18.23% year on year. The unit price increase offset part of the pressure from lower shipment volumes and indicates that overseas buyers still have the willingness to pay for mid-to-high-end wool garments.
The implications differ across industrial clusters. Enterprises focused on early-stage processing and raw material exports face a double squeeze of high import costs and export prices that cannot rise; garment exporters with design capabilities and brand premiums, by contrast, have gained breathing room through price increases. Profit in the wool textile industry is shifting from upstream processing to downstream finished products.
Industry Impact: The Real Difficulty of Cost Pass-Through
Industry analysis generally holds that wool textile trade is improving overall, but cost pass-through remains a challenge. The earlier sharp rise in wool raw material prices has directly squeezed downstream profits, while most export products have limited room for price increases, with only some garment categories achieving higher prices.
This means business divergence will intensify. Small and medium-sized mills without bargaining power may be forced to choose between orders and profit, while enterprises that can lock in raw material costs or offer higher value-added products have a chance to expand share in this shakeout. For buyers, supplier stability deserves more reassessment than price itself.
Going forward, international wool market movements need continued tracking. The month-on-month price decline in August is a positive signal, but fluctuations in global wool supply, exchange rate trends and demand changes in major consumer markets will all affect procurement costs in the coming months. Enterprises should strengthen raw material procurement risk control and rely on higher product value-added to defuse cost pressure.