One figure demands the attention of every wool textile professional: in the first five months of 2026, China's wool import value surged 34% year-on-year, while import volume remained virtually flat. This means global wool spot prices are climbing rapidly, and domestic wool processors are paying a higher premium for raw materials.
Simultaneously, the export side is undergoing a quiet structural shift—exports of wool tops to India and Turkey soared 77% and 54% respectively, as traditional European and American orders are being diluted by spinning capacity expansions in South Asia and the Middle East.
Raw Material Side: Price-Driven Growth with Volume Stability
According to China Customs data, from January to May, total imports of wool raw materials and products reached USD 1.71 billion, up 26.65% year-on-year. Wool and primary processed wool imports alone hit USD 1.1 billion, surging 34%, yet the total volume of 130,000 tons barely changed from last year.
This data sends a clear signal: the global wool market has entered a seller's phase. Supply growth from major producers like Australia and New Zealand is limited, while China, as the world's largest wool processing country, has rigid restocking demand. The supply-demand mismatch has directly pushed up unit import prices.
For domestic wool enterprises, this means procurement cost pressures will continue to transmit in the second half of the year. Primary processors lacking long-term price-locking capabilities face the risk of further margin compression.
Export Side: Emerging Markets Rewriting the Rules
In contrast to the hot raw material market, overall export growth was only 2.29%, and in RMB terms it even edged down 1.01%. But beneath the seemingly flat numbers lies a dramatic shift in market composition.
The explosive growth in India and Turkey is the biggest highlight. Exports of wool tops to India reached 9,086 tons, up 77.22%; to Turkey, 1,165 tons, up 54.69%. These two countries are becoming new hubs for global textile capacity relocation, and their expanding spinning capacity directly drives demand for Chinese semi-finished wool tops.
This means the role of Chinese wool enterprises is subtly changing: from a finished-product exporter to a semi-finished product supply hub. Wool and cashmere raw materials and semi-finished products now account for over 50% of exports, with growth rates of 5.11% and 6.97% respectively, consolidating the value-added advantage of high-end natural fiber products.
Industry Chain Transmission: Who Benefits, Who Bears the Pressure?
The high growth in raw material imports and the divergence in exports are reshaping profit distribution across the wool industry chain.
Upstream wool traders and importers are the most direct beneficiaries. Rising international wool prices combined with strong Chinese procurement demand have significantly enhanced their bargaining power. Downstream wool processing enterprises, however, face dual pressure: rising raw material costs erode profits, while the price pass-through on the export side has a time lag. Orders from emerging markets, though large in volume, are more price-sensitive.
It is noteworthy that cashmere product exports grew 6.97%, higher than ordinary wool products. This suggests that in the high-end niche market, Chinese companies' brand premiums and technological barriers still play a role. However, whether this advantage can be sustained under continuously rising raw material costs remains to be seen.