In the first five months of 2026, China's total import and export value of wool raw materials and products reached US$6.06 billion, up 8.16% year-on-year. This figure hides two contrasting forces: exports maintained resilience through emerging market orders, while imports surged due to rising raw material prices. The industry's recovery is clear, but profit margins are being squeezed from both ends.
Structural Divergence Under Dual Growth
Customs data shows that from January to May, wool exports totaled US$4.35 billion, up only 2.29% year-on-year, while in RMB terms they edged down 1.01%, highlighting a volume-price divergence. In contrast, imports hit US$1.71 billion, soaring 26.65%, with wool and primary processed wool imports reaching US$1.10 billion, up 34.04%. Import volumes remained flat at 130,000 tons, indicating that price increases drove the import surge. This suggests that while domestic wool textile manufacturers are eager to stock up, rising international wool spot prices are eroding cost advantages.
By category, export growth for wool and cashmere raw materials reached 5.11% and 6.97% respectively, reflecting growing overseas recognition of high-end natural fiber products. Cashmere products, with their high added value, acted as a stabilizer in the export market. However, for semi-finished product exporters focused on wool tops, cost pressures may quickly impact profit margins.
Emerging Markets: The Engine of Wool Top Exports
The biggest export highlight came from India and Turkey. In the first five months, China exported 9,086 tons of wool tops to India, surging 77.22% year-on-year, and 1,165 tons to Turkey, up 54.69%. This surge is no accident. The textile industries in South Asia and the Middle East are in an expansion phase, driving concentrated demand for semi-finished wool tops and directly boosting export volumes for domestic primary processors.
What does this growth mean for the supply chain? On one hand, it opens stable incremental channels for wool primary processors, reducing reliance on traditional European and American markets. On the other hand, emerging market orders are often price-sensitive. Against a backdrop of rising raw material costs, companies' ability to maintain profit margins depends on bargaining power and production efficiency.
Rising Import Costs: Reshaping Global Wool Sourcing
The surge in import data reveals a deeper trend: the global wool sourcing structure is being reshaped. Spot prices for wool from traditional producing regions like Australia and New Zealand continue to rise, pushing up total import values. Domestic wool textile manufacturers, in order to ensure capacity utilization and delivery schedules, have to accept higher procurement costs.
How will this cost pressure transmit downstream? In the short term, yarn and fabric segments may be forced to raise prices. In the long term, if the end market cannot absorb the increases, wool enterprises' gross margins will face challenges. For small and medium-sized processors, where raw materials account for a high proportion of costs, cash flow management will be a key risk factor in the second half of the year.
Industry Outlook: Recovery with Divergence
The data from the first five months paints a picture of "stable export demand and robust raw material demand," but divergence is equally evident. Exports rely on emerging market orders for growth, while imports are burdened by price increases. The industry's overall recovery is clear, but profit distribution is uneven.
For wool enterprises, strategies in the second half of the year need to be more refined: seize incremental opportunities in markets like India and Turkey, while locking in raw material costs through hedging and long-term contracts. The reshaping of the global wool sourcing structure is both a challenge and an opportunity to drive industrial upgrading.