In the first five months of 2026, China's wool textile trade crossed the $6 billion mark, reaching $6.06 billion, an 8.16% year-on-year increase. Behind this figure lies a structural shift: exports grew only 2.29%, while imports surged 27.35%—12 times faster than exports, a rare phenomenon in the past five years.
Import Surge: Domestic Demand Recovery Meets Raw Material Rush
Import data is striking. Of the $1.71 billion in imports, cashmere raw materials and products contributed $127 million, soaring 44.61%. The simultaneous rise in high-end cashmere fabrics and garment imports signals that domestic processors are not only ramping up production but also absorbing more premium demand.
Public customs data shows international wool prices have been rising since late 2025, with Australian and South African wool seeing notable gains. The stable operation of domestic worsted and cashmere deep-processing capacity forced companies to increase raw material purchases to lock in costs and secure supply chains. This import wave essentially reflects preemptive bets on future orders.
Export Divergence: Emerging Markets Take the Lead
The $4.35 billion in exports grew modestly, but market structure is reshaping. India and Turkey were the fastest-growing destinations: exports to India hit $76 million, up 40.19%, and to Turkey $41.46 million, up 24.89%. Wool tops drove these gains, with cumulative exports of 13,300 tons worth $178 million, up 21.68%.
Traditional markets showed mixed results. German orders held steady, while Vietnam and Italy saw slight volume declines but value increases, indicating a shift from volume to value competition.
Category Dynamics: Wool Tops and Cashmere as Dual Engines
Wool and cashmere products together account for over half of exports, both growing—wool products up 5.11% and cashmere up 6.97%. Yarn and knitted sweater demand from overseas reflects pre-season autumn order placement.
Emerging manufacturing countries like India and Turkey expanded wool processing, directly boosting intermediate goods exports. This signals a transition from finished-product exports to a dual model of intermediates and finished goods, leveraging China's full supply chain advantages.
Industry Logic: Three Drivers Behind Dual Growth
The dual growth is no coincidence. First, seasonal factors: autumn/winter orders arrived early, and emerging markets' wool processing demand concentrated. Second, domestic consumption recovery combined with technical upgrades boosted raw material procurement. Third, China's differentiated competitiveness—from wool tops to worsted fabrics to knitwear—is replacing low-end volume with high-end products.
Analysts expect wool exports to remain resilient through the peak autumn procurement season. But high import levels will persist, and companies must guard against international wool price volatility eroding margins.