In the first five months of 2026, China's wool textile trade posted a seemingly balanced but deeply divided performance. Total trade volume reached $6.06 billion, up 8.16% year-on-year, yet import growth (26.65%) outpaced export growth (2.29%) by a factor of ten. This customs data reveals a key signal: domestic demand is recovering, but raw material price pressure is escalating.
Imports: Volume Stable, Prices Surge
Wool raw material and product imports hit $1.71 billion, with wool and semi-processed wool imports totaling $1.1 billion, a 34.04% increase. Import volume remained flat at 130,000 tons, meaning the value increase was entirely driven by higher international wool auction prices. For domestic mills, this is not a simple restocking story. Tight supply from Australia and New Zealand, due to climate and rising farming costs, has pushed up prices, squeezing margins for downstream weaving and garment makers.
Semi-Finished Exports Boom in Emerging Markets
While overall export growth was modest, structural highlights were striking. Wool and cashmere raw material exports grew 5.11% and 6.97% respectively, but the real explosion was in semi-finished products:
- Wool top exports to India: 9,086 tons, up 77.22%
- Wool top exports to Turkey: 1,165 tons, up 54.69%
This surge is no accident. India and Turkey are aggressively expanding textile capacity, shifting from fabric processing to spinning, which demands high-quality wool tops. China, with its mature scouring, carbonizing, and combing technologies, has become the direct beneficiary. Industry analysts expect this trend to continue for at least two to three years as South Asian and Middle Eastern textile industries upgrade from processing to full-chain manufacturing.
Growing Divide Between Domestic and Export Markets
Exports reached $4.35 billion, up only 2.29%; in RMB terms, they even declined 1.01%. This suggests traditional European and American markets are recovering slowly, and RMB exchange rate fluctuations have eroded export profits. The real incremental growth came from emerging markets. Meanwhile, domestic raw material purchases are booming, with import growth far exceeding exports, signaling aggressive stockpiling for the autumn/winter season. However, this carries risks: if final consumer demand disappoints, inventory buildup could strain cash flow.