The import growth rate of raw materials is 13 times that of exports—this is the most telling divergence signal in China's wool textile sector in the first five months of 2026. According to publicly available customs data, the country's total trade in wool raw materials and products reached $6.06 billion from January to May, up 8.16% year-on-year. Beneath this seemingly stable top-line number, upstream and downstream segments are experiencing very different cycles: raw material procurement is surging in both volume and price, semi-finished product orders from emerging markets are exploding, while traditional finished product exports are growing modestly.
Raw Material Side: Import Value Accelerates, Price Replaces Volume as Driver
From January to May 2026, imports of wool raw materials and products totaled $1.71 billion, up 26.65% year-on-year. Among these, imports of wool and primary processed wool reached $1.1 billion, a sharp 34.04% increase, while the import volume stood at 130,000 metric tons, essentially flat compared to the same period last year. This "price up, volume stable" combination indicates that rising international wool spot prices are the main driver of higher import value, rather than a sudden surge in domestic demand volume.
For wool processing enterprises, this means raw material cost pressure is accumulating rapidly. Tight supply from major producing countries like Australia and New Zealand, combined with global inflation pass-through, has pushed wool prices higher. Although domestic cashmere deep-processing companies are actively building inventory, their procurement costs are significantly higher than a year ago, squeezing profit margins.
Export Side: Emerging Markets Become Growth Engine, Semi-Finished Goods Share Rises
On the export front, total wool textile exports reached $4.35 billion in the first five months, up 2.29% year-on-year. In RMB terms, exports were 30.23 billion yuan, a slight 1.01% decline, highlighting a price-volume divergence. The real bright spot lies in structural changes: wool top exports to India and Turkey have surged explosively.
- Exports of wool tops to India: 9,086 metric tons, up 77.22%
- Exports of wool tops to Turkey: 1,165 metric tons, up 54.69%
As an intermediate product for spinning, the surge in wool top exports directly reflects the expansion of textile production capacity in South Asia and the Middle East. India and Turkey are accelerating their absorption of global textile manufacturing transfer, creating sustained demand for semi-finished raw materials. This opens up stable incremental channels for domestic primary processing companies, but also signals a shift in export focus from high-value finished goods to lower-value semi-finished goods, which could impact industry profit margins over the long term.
Industry Impact: Divergence Between Domestic and Foreign Markets Intensifies
The core challenge facing the wool textile industry today is the mismatch between cost and orders amid stable foreign demand and strong raw material appetite. Rising import prices have already passed through to the production side, while export order growth is concentrated in semi-finished products with limited value addition. For spinning and weaving companies dependent on imported raw materials, profit margins are being squeezed from both ends.
Meanwhile, RMB exchange rate fluctuations have further amplified export pressure measured in USD. Companies relying solely on traditional European and American markets face limited growth space; pivoting to emerging markets like India and Turkey offers volume gains but requires adapting to shorter payment terms and more flexible delivery schedules.