Wool Import Surges 26%: New Landscape of Global Sourcing Reshapes China’s Textile Sector

While export growth for China's wool textile sector limped at 2.29%, imports surged 26.65% to $1.71 billion in the first five months of 2026. The data from China Customs reveals a structural shift: imports of raw wool and semi-processed wool reached $1.1 billion, up 34% year-on-year, driven by rising global wool prices and strong demand from emerging markets.

Emerging Markets: From Buyers to Production Hubs

India and Turkey are transforming from traditional buyers into core textile production bases. China's exports of wool tops to India soared 77.22% to 9,086 tons, and to Turkey rose 54.69% to 1,165 tons. These numbers reflect a global relocation of spinning capacity to South Asia and the Middle East, where low labor costs and policy incentives are fueling expansion. Chinese mills are now supplying semi-finished wool tops to feed these new factories, marking a shift from finished goods exporter to upstream material provider.

Import Price Surge: The Battle for Wool Pricing Power

Despite flat import volume (130,000 tons), wool import value jumped 34%, indicating a clear upward trend in international spot prices. Australia and New Zealand, the main suppliers, face reduced shearing volumes due to drought, tightening supply. Domestic mills now face squeezed margins as higher raw material costs are passed down the chain. The strong demand for wool tops from India and Turkey further intensifies competition for premium wool, creating a chain reaction: rising raw wool prices, booming semi-finished exports, and compressed profits for finished goods.

Industry Response: The Dilemma for Mill Clusters

In China's wool textile hubs like Tongxiang and Nantong, companies face a choice: chase semi-finished exports or focus on domestic finished goods. Wool tops exports offer quick payment and stable orders but thin margins, while the domestic market for wool garments remains sluggish. Overall export value grew only 2.29% in dollar terms and even fell 1.01% in RMB terms, reflecting price pressure on finished products. For small and medium enterprises, the semi-finished route is easier to enter but risks long-term price competition. Once India or Turkey develop their own initial processing capacity, orders could easily shift away.

Practical Recommendations

For Buyers - Secure long-term contracts with Australian and New Zealand suppliers to lock in prices amid rising wool spot market. Consider 6-12 month agreements. - Explore blended fibers (e.g., wool/tencel, wool/nylon) to reduce dependence on pure wool and manage cost volatility.

For Exporters - Deepen presence in India and Turkey by setting up local warehousing or distribution partnerships to shorten lead times and build loyalty. - Diversify into value-added processing (anti-shrink wool, organic certification) to avoid being locked into low-margin semi-finished products. Plan for eventual competition from local processors.