China's custom data shows that in the first five months of 2026, the total import and export value of wool textile raw materials and products reached $6.06 billion, up 8.16% year-on-year. This moderate headline figure, however, masks a deep structural shift driven by soaring raw material costs and surging demand from emerging markets—imports skyrocketed 26.65% while exports inched up only 2.29%, with rising prices and stable volumes defining the industry.
Raw Material Imports: High-Cost Stockpiling Becomes the Norm
Wool textile imports hit $1.71 billion in the period, a sharp 26.65% increase far outpacing export growth. Core wool and semi-processed wool imports reached $1.1 billion, up 34.04%, yet total volume stood at 130,000 tons, virtually flat. This means the entire import surge came from rising international wool spot prices. For domestic spinners and cashmere processors, raw material costs have shifted from a low base in 2025 to a sustained upward trajectory, making futures hedging and long-term contracts critical for procurement decisions.
The price-up, volume-flat pattern reflects a structural supply tightness in global wool. Major producers like Australia and New Zealand have seen stagnant shearing volumes due to drought and rising farming costs, while China, as the world's largest wool processor, faces rigid restocking demand. This tension will likely push import costs higher over the next six months, squeezing margins for firms that haven't pre-positioned inventory.
Export Side: Emerging Markets Drive Growth
In contrast to import cost pressures, exports reveal a new pattern of 'emerging markets rising, traditional markets stable.' Total wool textile exports reached $4.35 billion, up 2.29% year-on-year, with renminbi-denominated figures dipping 1.01% due to exchange rate fluctuations. The real story lies in India and Turkey: wool top exports to India surged 77.22% to 9,086 tons, and to Turkey jumped 54.69% to 1,165 tons.
This boom is no coincidence. India and Turkey are rapidly expanding domestic textile capacity, particularly in spinning, driving concentrated demand for wool tops—a semi-finished product—from China. The rise of South Asian and Middle Eastern textile belts is reshaping the traditional 'China spins, Western markets buy' trade flow. For domestic processors, this shifts export order stability from volatile Western brand orders to bulk industrial orders from emerging markets, which, while potentially lower in unit price, offer larger volumes and longer cycles suitable for scale production.
Category Differentiation: Premium Natural Fibers Command a Premium
Among sub-categories, wool and cashmere raw materials—accounting for over 50% of wool textile exports—grew 5.11% and 6.97% respectively, outperforming the overall export growth. This signals rising global recognition of high-value natural fiber products, with cashmere benefiting from a recovery in light luxury consumption. Meanwhile, faster growth in wool top exports (a semi-finished good) confirms that China retains cost and scale advantages in initial processing stages of the global division of labor, but profit margins face dual pressure from rising upstream raw material costs and downstream bargaining from emerging markets.