In the first seven months of 2026, China's technical textiles exports reached US$26.97 billion, up 8.4% year-on-year — a standout performance amid broader pressure on textile exports. Yet total profits of above-scale enterprises fell 1.3%, with the operating margin slipping to 3.4%. The simultaneous occurrence of export growth and profit contraction signals a shift in the industry's growth engine and an accelerating divergence in profit distribution.
Where Does Export Resilience Come From?
China Customs data shows imports of technical textiles reached US$3.3 billion, up 5.2%, with both imports and exports growing — a rare feat given the global trade slowdown. The core drivers are nonwovens and absorbent hygiene products. Nonwoven exports hit US$2.81 billion, up 14.0%, with volume at 1.095 million tonnes, up 13.8%. Absorbent products such as diapers and sanitary napkins reached US$2.55 billion, up 14.2%, becoming the third-largest export category.
What does this mean? The surge in nonwovens and absorbent products essentially reflects rigid overseas demand for hygiene and protective consumables. Exports of nonwovens to Vietnam, Japan, and Indonesia all grew by more than 20%, indicating that Southeast Asia's manufacturing recovery and rising local consumption are creating new incremental space for Chinese technical textiles.
In terms of market structure, the US, Vietnam, and Japan were the top three destinations, with exports of US$3.16 billion, US$2.07 billion, and US$1.33 billion, up 6.4%, 10.7%, and 4.2% respectively. Single-digit growth in the US and double-digit growth in Vietnam reflect a shift toward near-shoring and regional supply chains, a trend already materializing in export patterns.
The Underlying Logic of Profit Divergence
National Bureau of Statistics data shows that nonwoven output of above-scale enterprises grew 7.7% year-on-year, while tire cord fabric output rose 4.7%. While output rose steadily, revenue grew 4.7% but profit fell 1.3%, widening the scissors gap between revenue and profit.
Performance across sub-sectors varies greatly. Nonwovens posted a clear profit recovery, with revenue and total profit up 7.1% and 24.2% respectively, and the profit margin rising 0.3 percentage points — the brightest spot in the industry. Ropes and cables saw revenue up 5.6% but profit down 0.8%, a mild squeeze. Tarpaulin revenue grew 7.3% with profit down just 0.5%.
However, textile belts and tire cord fabric saw both revenue and profit decline, with profit down 12.7%. Construction and protective textiles revenue grew 2% but total profit plunged 14.1%, the steepest margin decline among all sub-sectors. Listed companies confirm the trend: in the first half, 35 related listed firms saw revenue up 10.5% but total profit down 4.1%, with nonwovens and filtration textiles performing well while tarpaulin and safety protection firms faced heavy pressure.
Why did nonwovens stand out? Relatively controllable raw material prices, rigid downstream demand for hygiene products, and full export orders combined to create a window for profit recovery. Tire cord and protective products, by contrast, are constrained by fluctuations in the downstream tire industry and slowing infrastructure investment, with weak cost pass-through squeezing profits.
Cost Pressure from Raw Materials
In July-August, repeated geopolitical tensions in the Middle East pushed oil prices up before high-level volatility, strengthening cost support for chemical fibers. Polyester prices rose overall, but downstream purchasing willingness was limited. Nylon prices climbed in steps; polypropylene raw materials fluctuated at high levels; viscose staple fiber edged up on low inventories.
For factories, rising raw material prices with insufficient downstream acceptance means greater difficulty in passing on costs. For tire cord, ropes, and cables tied to industrial demand, downstream customers are less tolerant of price hikes, potentially further narrowing margins. For buyers, with raw material prices in a high-volatility range, price-locking windows and inventory strategies need to be more precise.
Practical Recommendations
For Buyers - Given the strong export momentum in nonwovens and absorbent products, prioritize locking in stable suppliers in Southeast Asia to mitigate regional supply chain risks. - During high raw material price volatility, adopt a combination of batch purchasing and forward price locking to reduce cost fluctuations in polyester and nylon procurement.
For Exporters - With demand for nonwovens in Vietnam and Indonesia growing over 20%, increase channel development and customer acquisition in these regions. - Facing profit compression in tire cord and protective products, focus on optimizing product mix toward higher-value filtration and medical dressings.
The industry as a whole remains resilient, but raw material volatility, diverging downstream demand, and a complex overseas trade environment remain major challenges. The performance gap across sub-sectors is widening, and exports have become the most important growth engine. Companies must focus on both cost control and tapping niche markets.