Wool Trade Pattern Shifts: Surging Orders from India and Turkey, Domestic Raw Material Imports Rise in Value but Stable in Volume

In the first five months of 2026, China's wool textile sector delivered a mixed performance: total trade exceeded USD 6 billion, but internal and external markets diverged sharply. Exports were buoyed by emerging markets like India and Turkey, while raw material imports showed a pattern of rising value but stable volume, reflecting a global wool supply chain realignment.

Emerging Market Engines Drive Wool Top Exports

Customs data shows that China's wool textile and product exports reached USD 4.35 billion from January to May, up 2.29% year-on-year. While the RMB-denominated figure dipped slightly, the USD growth is notable. Wool and cashmere raw material exports grew 5.11% and 6.97% respectively, indicating rising global demand for high-end natural fibers.

Exports to India and Turkey surged: wool top exports to India hit 9,086 tons, up 77.22%, and to Turkey 1,165 tons, up 54.69%. These two markets are expanding spinning capacity, driving demand for semi-processed wool. For Chinese processors, this means a strategic shift from traditional Western markets to South Asian and Middle Eastern industrial chains.

Raw Material Imports: Price Up, Volume Stable

In contrast to moderate export growth, raw material imports surged: total imports reached USD 1.71 billion, up 26.65%. Core wool imports hit USD 1.10 billion, up 34.04%, but volume remained flat at 130,000 tons. This "price-up, volume-stable" pattern shows that higher international wool spot prices are driving the import bill. Global wool supply restructuring—volatility from Australia and New Zealand, plus production cuts in South America—is forcing Chinese mills to lock in raw materials at higher costs, squeezing mid-stream margins.

Industry Chain: Stockpiling vs. Cost Pressure

The import surge reflects restocking demand after last year's destocking cycle. However, wool price increases are outpacing end-product price adjustments, compressing processing margins. In cashmere hubs like Hebei's Qinghe and Zhejiang's Tongxiang, mills are accelerating procurement and locking in Q3 shipments. Meanwhile, wool mills in Jiangsu and Shandong are monitoring RMB exchange rate volatility, which has eroded export revenue in RMB terms.

Practical Recommendations

For Buyers - Monitor weekly international wool auction prices; spot prices are near two-year highs. Consider phased purchasing to smooth cost volatility. - Strong demand from India and Turkey may tighten domestic semi-processed wool supply; sign quarterly supply agreements with processors early. - Hedge RMB exchange rate risk on import contracts by locking forward rates or using RMB settlement.

For Exporters - While emerging market orders are strong, monitor trade policy changes in India and Turkey, especially tariffs and inspection requirements. - Prioritize wool top exports as a key growth category, while exploring premium cashmere product opportunities in European and US markets. - With high raw material costs, consider futures hedging or long-term procurement agreements with upstream farms to lock in costs.