China's wool textile trade in the first five months of 2026 reached $6.06 billion, growing 8.16% year-on-year, according to the latest customs data. But beneath this headline figure lies a deeper restructuring: export growth is driven by semi-finished products to emerging markets, while imports show stable volume with rising prices.
Emerging Markets: The Wool Top Export Surge
Total exports of wool raw materials and products stood at $4.35 billion, up 2.29% in USD terms but down 1.01% in RMB terms due to exchange rate fluctuations. This divergence highlights the real volume growth behind currency effects.
Wool and cashmere raw material exports grew 5.11% and 6.97% respectively, reflecting rising global recognition of high-end natural fibers. The standout category is wool top: exports to India surged 77.22% to 9,086 tons, and to Turkey by 54.69% to 1,165 tons. India and Turkey are becoming core growth drivers for China's wool exports.
This boom is rooted in capacity expansion of South Asian and Middle Eastern textile industries, where downstream spinning mills are releasing concentrated demand for semi-finished wool top. For Chinese primary processors, this creates a stable incremental channel with stronger investment-driven durability compared to traditional Western orders.
Raw Material Imports: Price Hike with Stable Volume
Imports tell a more striking story. Total imports reached $1.71 billion (RMB 11.87 billion), surging 26.65% year-on-year. Core wool and primary processed wool imports hit $1.1 billion, up 34.04%, yet total volume stood at 130,000 tons, roughly flat year-on-year.
This reveals a key fact: international wool spot prices are rising, inflating import value, but domestic companies are not expanding procurement volume proportionally. The restocking behavior is more price-driven than capacity-driven. Global wool supply chains are restructuring—tightening supply in major producing countries, rising transport costs, and shifting trade routes are pushing up the price floor.
For Chinese wool textile and cashmere processors, raw material cost pressure is mounting, while downstream order stability remains unverified. If export price pass-through fails to keep pace, profit margins will compress further.
Industry Divergence: Raw Material Heat vs. Finished Product Chill
Behind the dual growth in exports and imports lies clear market divergence. Exports in RMB terms dipped slightly, reflecting higher price sensitivity in foreign demand; imports show stable volume but rising costs. The gap between these two dynamics tests the resilience of midstream players.
Wool top export boom is a highlight, but such semi-finished products offer limited value addition. Cashmere product exports grew 6.97%, but their absolute scale depends on recovery in high-end Western consumer markets.
Currently, the industry's recovery relies more on cost push and emerging market restocking than on a broad consumption rebound. Once raw material prices peak or emerging market capacity expansion slows, the sector may face periodic adjustments.