Wool Trade Landscape Shifts: Surge in Semi-Finished Orders from Emerging Markets, Stable Import Volumes with Rising Prices

China's wool textile industry posted a structurally split performance in the first five months of 2026. Total trade in wool raw materials and products reached $6.06 billion, up 8.16% year-on-year according to customs data. But the real story lies in the divergent growth drivers between exports and imports: exports are fueled by booming semi-finished orders from emerging markets, while imports are pushed higher by rising international raw material prices.

Export Shift: India and Turkey Emerge as New Engines for Wool Top Demand

Export performance was steady overall, with total exports reaching $4.35 billion, up 2.29% in dollar terms but down 1.01% in renminbi terms due to exchange rate fluctuations. Within sub-categories, wool and cashmere raw material exports grew 5.11% and 6.97% respectively, reflecting rising global recognition of high-end natural fiber products.

The real breakout came in semi-finished products. Demand for wool tops from India and Turkey surged: China exported 9,086 tons of wool tops to India, up 77.22% year-on-year, and 1,165 tons to Turkey, up 54.69%. This signals rapid expansion of textile processing capacity in South Asia and the Middle East, creating a stable incremental channel for domestic wool top processors.

Import Paradox: Stable Volume, Rising Prices

Unlike the export side, imports showed a classic 'rising price, stable volume' pattern. Total imports reached $1.71 billion, up 26.65% year-on-year, far outpacing export growth. Core wool and primary processed wool imports hit $1.1 billion, up 34.04%, but total volume of 130,000 tons was essentially flat.

This reveals a core contradiction: international wool spot prices are rising, pushing up import values, but domestic companies are not significantly increasing purchase volumes. Downstream weaving and deep-processing enterprises are absorbing higher raw material costs, with inventory replenishment constrained by price pressures. For buyers, the key question is no longer 'whether to buy', but 'at what price'.

Supply Chain Implications: Profit Redistribution

The structural divergence in trade data is reshaping profit distribution across the value chain. Upstream suppliers benefit from rising prices, while mid-stream processors face dual pressure: absorbing high-cost raw materials while maintaining export price competitiveness.

The surge in wool top orders from India and Turkey provides a crucial outlet for domestic processors to pass on raw material costs. For downstream garment makers, the situation is more complex. Cashmere product exports grew 6.97%, but end-consumer markets are more price-sensitive, potentially squeezing margins if raw material prices stay elevated.

Practical Recommendations

For Buyers - Monitor international wool auction prices and build dynamic inventory management systems to avoid concentrated restocking at price peaks. - Negotiate medium-to-long-term contracts with emerging market clients in India and Turkey to lock in partial order prices and hedge against raw material volatility. - Diversify sourcing by evaluating supply stability from major wool-producing countries like Australia and New Zealand.

For Exporters - Intensify customer development in India and Turkey, especially for wool tops, leveraging current demand peaks to establish long-term relationships. - Optimize export product mix by increasing the share of high-value-added items like cashmere to offset margin erosion from rising raw material costs. - Monitor renminbi exchange rate fluctuations on dollar-denominated export orders and use forward exchange contracts to lock in returns.