China's Industrial Textile Exports Up 8.4% in First Seven Months: Why Nonwovens Profit Recovery Stands Out

Export growth outpacing revenue growth while profit declines—this scissors gap is the most notable feature of China's industrial textile sector in the first seven months of 2026. China Customs data shows industrial textile exports reached USD 26.97 billion, up 8.4% year-on-year, while above-scale enterprise revenue grew 4.7% and total profit fell 1.3%. The export engine is accelerating, but profitability has not kept pace, indicating that cost transmission and product mix issues are squeezing margins in the mid-stream.

Export Structure Shifts: Nonwovens and Absorbent Products Take the Lead

The growth drivers have changed. Nonwoven exports reached USD 2.81 billion in the first seven months, up 14.0% year-on-year, with export volume of 1.095 million tons, up 13.8%—a rare combination of volume and price growth among chemical fiber products. More significantly, absorbent hygiene products—diapers, sanitary napkins and similar items—reached USD 2.55 billion in exports, up 14.2%, rising to become the third-largest export category. Wet wipes exports hit USD 720 million, up 17.5%, leading all key categories.

The underlying logic is the overlap of overseas capacity substitution and consumption upgrading. As downstream processing capacity expands in Vietnam and Indonesia, demand for Chinese nonwoven roll goods continues to rise. Industry public data shows nonwoven exports to Vietnam, Japan and Indonesia all grew over 20%. The US, Vietnam and Japan are the top three export markets at USD 3.16 billion, USD 2.07 billion and USD 1.33 billion respectively. This means export growth no longer relies solely on traditional Western markets—Southeast Asia is becoming a second growth pole for nonwovens.

Profit Divergence: Nonwovens Recover, Tire Cord and Protective Textiles Under Pressure

Profitability across sub-sectors is moving in opposite directions. Nonwoven enterprises saw revenue and total profit grow 7.1% and 24.2% respectively, with profit margin up 0.3 percentage points—the only segment achieving significant profit recovery. Profit growth far exceeding revenue growth suggests that earlier capacity digestion and product upgrading are paying off.

By contrast, tire cord and protective textiles face clear pressure. The textile belt and tire cord sector saw both revenue and profit decline, with profit down 12.7%. Construction and protective industrial textiles saw total profit fall 14.1%, the steepest margin decline among all sub-sectors. Tarpaulin revenue grew 7.3% but profit edged down 0.5%, highlighting revenue growth without profit growth. Rope and cable revenue rose 5.6% with profit down 0.8%, in a weak equilibrium.

Listed company data confirms the same divergence. In the first half, 35 listed industrial textile companies saw revenue grow 10.5% while total profit fell 4.1%. Nonwoven and filtration textile companies performed well on revenue, while tarpaulin and safety protection companies faced notable profit pressure. The coexistence of revenue growth and profit contraction in capital markets reflects that overall demand remains acceptable, but price competition and raw material costs are eroding profitability.

Cost Side: Oil Price Volatility Pushes Up Chemical Fiber Costs, Procurement Pace Cautious

Geopolitical tensions in the Middle East fluctuated in July-August, with international oil prices first rising then oscillating widely at high levels, strengthening cost support for chemical fiber raw materials. Polyester prices trended upward overall, but downstream procurement willingness was limited. Nylon prices rose in steps. Polypropylene raw materials oscillated at high levels. Viscose staple fiber edged up on low inventory.

For factories, rising raw materials and downstream price pressure coexist, making stockpiling windows and order price locking more critical. Nonwoven profit recovery partly benefited from earlier low-cost raw material inventories and export order spreads, while tire cord and protective textile companies struggle to pass costs downstream amid weak construction and industrial demand.

Exports remain the sector's most important growth engine, but whether emerging market volume growth can sustain depends on overseas inventory cycles and local capacity build-out. Companies need to balance cost control with niche market development.

Practical Recommendations

For Buyers - With intensifying export competition in nonwovens and absorbent products, Southeast Asian suppliers may offer more flexible quotes. Compare landed costs of Vietnamese and Indonesian sources against domestic offers. - During high-level chemical fiber price volatility, consider分批 price locking or shorter payment terms to reduce price risk in polyester and nylon procurement. - Watch for supplier concessions in pressured categories like tire cord and tarpaulin, but assess delivery stability simultaneously.

For Exporters - With nonwoven exports to Vietnam, Japan and Indonesia growing over 20%, prioritize Southeast Asian market resources and monitor local certification and access requirements. - Absorbent hygiene products have become the third-largest export category; increasing investment in overseas channels for diapers and sanitary napkins is worthwhile. - Accounts receivable grew 7% year-on-year. Export volume growth comes with longer payment cycles—strengthen credit management and currency hedging to prevent financial costs from eroding profits.