In the first five months of 2026, China's wool textile sector posted a striking set of figures: total trade reached $6.06 billion, up 8.16% year-on-year, but import growth (27.35%) was nearly 12 times that of exports (2.29%). This signals a structural shift—exports are supported by emerging markets, while imports surge due to domestic processing recovery.
Exports: Emerging Markets Take the Lead, Wool Tops Drive Growth
Total exports of $4.35 billion showed a modest 2.29% increase, but the internal structure changed significantly. Traditional European and American markets showed divergence: German orders remained stable, while exports to Vietnam and Italy saw slight volume declines but value increases, indicating a shift toward higher-value products. The real highlight came from emerging economies. India imported $76 million, up 40.19%, and Turkey saw a 24.89% rise to $41.46 million. The key driver was wool tops—cumulative exports reached 13,300 tons worth $178 million, up 21.68%.
The surge in wool top exports directly reflects capacity expansion in overseas textile manufacturing countries. India and Turkey are taking on global wool processing orders, boosting demand for semi-finished materials. For domestic wool top producers, this is not just a short-term order bonus but a strengthening of supply chain position.
Meanwhile, finished products performed steadily. Wool product exports rose 5.11%, cashmere products 6.97%, with yarns and knitwear maintaining stable overseas demand. This shows that China's wool products remain competitive despite rising costs, finding new growth in high-end, differentiated segments.
Imports: Processing Recovery and High-End Consumption Drive Growth
The import data is the most noteworthy signal. Of the $1.71 billion total, cashmere raw materials and products contributed $127 million, up 44.61%. Imports of high-end cashmere fabrics and garments rose in both volume and value, indicating a recovery in domestic demand for premium wool products.
The deeper logic lies in upstream transmission. Rising international wool prices, combined with stable domestic spinning and cashmere processing capacity, prompted companies to increase purchases of premium raw materials like Australian merino and South African wool. This is not just inventory replenishment but a bet on full-year order expectations. The entire chain—from spinning to knitting to worsted fabrics—is preparing for the peak season.
Notably, import growth far exceeded exports. While the trade surplus remains stable, the structure is changing. This means domestic processing value-add is increasing; companies are importing high-quality raw materials, processing them, and re-exporting higher-value products, creating a more sophisticated trade cycle.
Industry Logic: Order Front-Loading and Industrial Upgrades
Three core drivers underpin this dual growth. First, overseas autumn/winter orders were placed earlier. Brands and retailers moved up purchasing plans to hedge against supply chain risks, boosting exports of intermediate goods like wool tops and yarns. Second, domestic consumption recovery combined with enterprise tech upgrades and capacity expansion drove raw material demand. Third, China's full-chain wool textile advantages are translating into global competitiveness.
For buyers and exporters, the current environment offers both opportunities and challenges. Rising raw material prices and surging imports suggest cost pressures may further transmit to finished products in H2.
For Buyers - Monitor wool and cashmere price trends; consider locking in orders early to hedge against H2 price increases. - Prioritize suppliers with full-chain processing capabilities to reduce intermediary cost stacking. - Track capacity dynamics in India and Turkey, as their order changes directly impact wool top prices.
For Exporters - Increase the share of high-value products like worsted fabrics and cashmere garments to offset declines in low-end volume. - Target growth markets like India and Turkey by promoting semi-finished goods such as wool tops and yarns, capitalizing on their capacity expansion window. - Closely watch international wool price fluctuations; use forward contracts to lock in procurement costs and protect margins.
Overall, the H1 2026 wool trade data sends a clear signal: the industry is shifting from scale-driven to quality-driven growth. The import surge is not a burden but a testament to industrial upgrading. As the autumn/winter procurement season arrives, exports are expected to maintain resilience, but raw material cost management will be the key differentiator among enterprises.