Wool Trade Dual Growth: Imports Surge 27% as Exports Find New Markets

The wool textile industry is experiencing an asymmetric recovery. In the first five months of 2026, China's total wool textile trade reached $6.06 billion, up 8.16% year-on-year. But behind the headline growth, exports only edged up 2.29% to $4.35 billion, while imports surged 27.35% to $1.71 billion. This widening gap reflects two forces: domestic restocking demand and a shift in export markets.

Export Side: Emerging Markets Take the Lead

Wool top is the standout product. Exports hit 13,300 tons worth $178 million, a 21.68% jump. This is not final consumer demand but intermediate goods trade. India received $76 million (+40.19%) and Turkey $41.46 million (+24.89%), driven by wool top shipments. These countries are building their own textile processing capacity, pulling in semi-finished wool products. Traditional markets are mixed: Germany grew, while Vietnam and Italy saw volume drops but still higher values, indicating a shift to premium products. Overall, wool product exports rose 5.11% and cashmere products 6.97%, with knitted sweaters showing stable demand.

Import Side: Raw Material Buying Signals Recovery

The import surge is more telling. Cashmere raw materials alone hit $127 million, up 44.61%. Mills are restocking premium Australian and South African wool. Two factors drive this: rising capacity utilization in domestic processing and recovering high-end consumption, as cashmere fabric and garment imports climb in both volume and value. International wool prices are also rising, pushing import value growth ahead of volume. This means cost pressure is building for downstream factories.

Industry Logic: Structural Challenges Behind Growth

The dual growth is not without risks. Export growth at just 2.29% lags far behind import growth at 27.35%, narrowing the trade surplus. This signals rising dependency on imported raw materials without matching export momentum. Early autumn/winter orders provide short-term support, but sustainability is uncertain. Emerging market demand is volatile, and domestic consumption recovery needs confirmation. If domestic demand falters, mills could face inventory overhang.

For factories, the core challenge is cost control. High raw material prices and limited customer tolerance for price increases force a focus on differentiation and premiumization.

Practical Advice

For Buyers - Hedge raw material price risk: Sign quarterly floating-price contracts with suppliers to lock in long-term orders and avoid sudden cost spikes. - Be cautious with emerging markets: Fast-growing orders from India and Turkey carry payment and currency risks. Use letters of credit or export credit insurance. - Pre-position in premium categories: Rising cashmere imports signal high-end domestic demand. Increase procurement quotas for fine worsted fabrics and cashmere garments.

For Exporters - Diversify market focus: Traditional Western markets are stagnating. Expand into Belt and Road countries, especially the Middle East and Southeast Asia, where wool processing demand is rising. - Strengthen intermediate goods: Wool top exports are growing faster than finished products. Focus on quality and delivery reliability for semi-finished items like yarn and tops. - Manage raw material costs: Use futures hedging or long-term supplier agreements to lock in prices and protect export margins.