China's wool textile industry delivered a mixed performance in the first five months of 2026. Customs data reveals total trade reached $6.06 billion, up 8.16% year-on-year, but with significant internal divergence: exports grew modestly by 2.29%, while imports surged 26.65%. This suggests domestic mills are actively building raw material inventories, while overseas finished product demand hasn't kept pace, pushing the industry into a 'raw material-driven' growth phase.
Raw Material Imports: Stable Volume, Rising Prices
Imports were the standout variable. Wool raw material and primary processed product imports hit $1.10 billion, up 34.04%, despite volume staying flat at 130,000 tons. This price-up, volume-stable pattern reflects rising international wool spot prices. For domestic spinners and cashmere processors, raw material cost pressure is mounting, prompting strategic stockpiling.
From an industrial logic perspective, import growth outpacing exports signals rising capacity utilization in China's wool textile sector. However, if this inventory-building continues without proportional end-demand expansion, it could squeeze profit margins in the second half of the year. Buyers should watch for potential price corrections.
Export Divergence: Emerging Markets Drive Growth
Exports reached $4.35 billion, with a slight 1.01% decline in RMB terms but a 2.29% increase in USD terms—highlighting exchange rate erosion. Wool and cashmere raw material exports grew 5.11% and 6.97%, reflecting growing global recognition of premium natural fibers. The real story, however, lies in market shifts.
India and Turkey emerged as key growth engines. Wool top exports to India surged 77.22% to 9,086 tons, and to Turkey increased 54.69% to 1,165 tons. Industrial expansion in South Asia and the Middle East is driving semi-finished product demand, opening stable new channels for Chinese processors.
Industry Impact: Restructuring Supply Chains
The data reveals three structural shifts. First, global wool sourcing patterns are realigning, with China pivoting toward emerging markets. Second, the gap between rising raw material prices and tepid end-demand will test cost management. Third, capacity expansion in India and Turkey may eventually substitute Chinese finished exports but currently boosts semi-finished trade.
For factories, the procurement window may be narrowing. With international wool prices trending upward, building inventory sooner rather than later is advisable. For exporters, consolidating relationships in India and Turkey is critical, while also scouting emerging textile hubs like Bangladesh and Vietnam.