In the first five months of 2026, China's total import and export of wool textile raw materials and products reached $6.06 billion, up 8.16% year-on-year. However, what deserves more attention than the total volume is the significant divergence in the import-export structure: exports only increased slightly by 2.29%, while imports surged by 26.65%. This indicates that the domestic wool textile industry chain is undergoing a deep adjustment in supply and demand, and the global wool supply pattern is being rewritten.
Export Side: Emerging Markets Take Over, Wool Top Becomes Key Driver
Total exports amounted to $4.35 billion, a seemingly modest 2.29% increase, but the internal structure reveals hidden trends. Exports of wool and cashmere raw materials and products grew by 5.11% and 6.97% respectively, far outperforming the overall market, reflecting rising overseas recognition of high-end natural fibers.
The real breakout came from emerging markets. India and Turkey became the core engines driving wool textile exports. In the first five months, China's wool top exports to India reached 9,086 tons, a staggering 77.22% year-on-year increase; exports to Turkey reached 1,165 tons, up 54.69%. As a semi-finished product for spinning, the surge in wool top exports directly reflects the rapid expansion of textile production capacity in South Asia and the Middle East. India and Turkey are heavily investing in textile manufacturing, releasing concentrated demand for upstream semi-finished products, opening a stable incremental channel for domestic wool primary processing enterprises.
This trend is not short-term. India's textile industry continues to expand under policy support and labor advantages, while Turkey leverages its geographical position to radiate into European and North African markets. Demand for wool top from these two countries is expected to remain high for the next 2-3 years. Domestic companies should seize this window to consolidate supply chain partnerships.
Import Side: Strong Raw Material Restocking, Wool Price Pass-Through Has Arrived
In stark contrast to the moderate growth in exports, imports showed explosive growth. In the first five months, imports of wool textile raw materials and products reached $1.71 billion, a sharp 26.65% year-on-year increase. Among them, imports of core raw materials, wool and primary processed wool, reached $1.10 billion, up 34.04%; import volume was 130,000 tons, basically flat. The characteristics of stable volume and rising prices are very obvious, with international wool spot prices pushing up import costs.
The import growth rate far exceeds exports, indicating that domestic wool textile enterprises are accelerating raw material stockpiling. This reflects both positive downstream order expectations leading to proactive stockpiling, and the possibility that upstream raw material prices may continue to rise, prompting companies to lock in supplies early. For buyers, current wool prices are already relatively high. Future trends require close monitoring of production changes in major producing regions such as Australia and New Zealand, as well as exchange rate fluctuations.
From a supply structure perspective, global wool supply is undergoing adjustments. Australia has seen a decline in wool production due to drought, while South American and South African producing regions are gradually increasing output. As the world's largest wool processing country, China is deepening the diversification of its import sources, which helps spread risk but also places higher demands on supply chain management.
Industry Impact: Survival Logic for Companies Amid Internal and External Divergence
The dual growth in imports and exports but structural divergence reveals a core fact: China's wool textile industry is shifting from a rough 'large imports and large exports' model to a high-quality development path of 'precise imports and stable exports.' The export side is driven by semi-finished products to emerging markets, indicating that the domestic industry is migrating to the mid-to-high end of the value chain; the rising cost of imported raw materials forces companies to increase product added value.
For factories, the explosive growth of wool top exports means capacity utilization in the primary processing sector will remain high, but profit margins may be squeezed by rising raw material prices. Companies need to optimize procurement schedules, use futures tools to lock in forward prices, and improve processes such as scouring and carbonizing to reduce loss rates.
For buyers, the trend of wool prices being more likely to rise than fall is difficult to reverse in the short term. It is recommended to monitor weekly data from the Australian wool auction market and lock in prices 3-4 months in advance based on order cycles. At the same time, consider increasing the procurement proportion of South American wool to diversify supply risks.