The wool textile industry is undergoing a structural recovery driven by domestic demand. In the first five months of 2026, China's total wool textile trade reached $6.06 billion, up 8.16% year-on-year. But the standout figure is imports: $1.71 billion, surging 27.35%—nearly 12 times the export growth rate. This signals a major restocking cycle by domestic processors, with raw material purchases outpacing overseas order intake.
Import Surge: A Barometer of Domestic Recovery
The import spike is no accident. Cashmere raw materials and products hit $127 million, up 44.61%, with high-end cashmere fabrics and garments seeing both volume and value gains. Two forces are at play: rising domestic consumption of premium wool products, and stable capacity in worsted and cashmere processing that requires early raw material commitments. Rising international wool prices—especially for Australian Merino and South African mohair—have accelerated procurement.
This import-led growth pattern is rare in recent years. It suggests domestic demand recovery is outpacing external volatility, shifting the industry's driver from export-oriented to dual circulation. For upstream suppliers, this is a window for stronger pricing power.
Export Divergence: Emerging Markets Take the Lead
Exports grew only 2.29%, but structural shifts matter. Shipments to India jumped 40.19% to $76 million, and to Turkey 24.89% to $41.46 million. Wool tops are the key driver: cumulative exports reached 13,300 tons worth $178 million, up 21.68%.
Emerging textile manufacturing countries are becoming major buyers of Chinese wool tops as their processing capacity expands. Traditional markets like Vietnam and Italy saw slight volume declines but higher values, indicating Chinese products maintain pricing power. German orders stayed firm, reflecting European confidence in Chinese wool quality.
Cashmere product exports rose 6.97%, wool products 5.11%, with yarns and knitted sweaters performing steadily. Early autumn/winter orders provide a buffer for H2, but a potential slowdown in Western holiday orders could pressure export growth.
Core Logic: Full-Chain Advantage Solidifies
This dual growth reflects China's integrated wool textile supply chain. From raw material sourcing, spinning, dyeing to finishing, domestic mills offer one-stop solutions, making them preferred partners amid global supply chain restructuring. The wool top export boom reinforces China's role as the global hub for wool intermediates.
Meanwhile, technical upgrades in worsted fabrics and cashmere processing enable higher value-added production. Stable trade surplus indicates that profit distribution along the chain is improving, with prices not being squeezed by rising raw material costs.