Nonwoven output rose 7.7% while its profit surged 24.2% — placing these two figures side by side reveals more about China's technical textiles sector in the first seven months of 2026 than any aggregate indicator. According to the China Nonwovens & Industrial Textiles Association, above-scale enterprises posted a 4.7% year-on-year revenue increase, yet total profit fell 1.3%, with the operating margin at 3.4%, down 0.2 percentage points. This scissors gap between revenue growth and profit decline signals that the industry has not yet escaped cost pressure, even as internal divergence widens.
Divergence Across Sub-Sectors
Nonwovens stand out as the strongest performer. Above-scale enterprises in this segment saw revenue rise 7.1% and total profit jump 24.2%, with the margin improving 0.3 percentage points. The gap between profit and output growth suggests companies are converting volume into actual earnings through product mix upgrades and raw material cost management, rather than trading volume for price.
By contrast, the textile belt and tire cord fabric sector saw both revenue and profit decline, with profit falling 12.7%. Tire cord fabric is tightly linked to the tire and automotive supply chain; slowing global vehicle production and weak replacement tire demand have directly compressed pricing power. The rope and cable segment grew revenue 5.6% but saw profit slip 0.8% — a classic case of growth without profitability. Tarpaulin and canvas grew revenue 7.3% with profit edging down 0.5%, roughly holding the line.
Construction, protective, and other technical textiles grew revenue just 2% while total profit plunged 14.1%, the steepest margin decline among all segments. After years of capacity expansion, protective products now face reversed supply-demand dynamics, intensified price competition, and rising export market barriers. Listed company data corroborates this: 35 related firms reported 10.5% revenue growth in the first half but a 4.1% decline in total profit, with nonwovens and filtration textiles performing well while tarpaulin and safety protection firms faced acute pressure.
Export Engine and Market Restructuring
Exports have become the sector's most important growth pillar. Customs data show technical textile exports reached $26.97 billion in January-July, up 8.4%, while imports rose 5.2% to $3.3 billion. Export growth outpacing overall revenue growth indicates overseas demand is playing a larger role in absorbing domestic capacity.
Among key categories, nonwoven exports totaled $2.81 billion, up 14.0%, with volume at 1.095 million tons, up 13.8% — growth in both value and volume. Absorbent hygiene products (diapers, sanitary napkins) reached $2.55 billion in exports, up 14.2%, becoming the third-largest export category. This shift is notable: China's technical textile export mix is extending from traditional industrial consumables toward higher-value consumer goods. Wet wipes exports hit $720 million, up 17.5%; fiberglass products and packaging textiles both grew over 10%; coated fabrics, felt tents, ropes and cables, canvas, and medical dressings all posted gains.
The top three export markets were the United States, Vietnam, and Japan, at $3.16 billion, $2.07 billion, and $1.33 billion respectively, growing 6.4%, 10.7%, and 4.2%. Vietnam and Japan outpaced the US, reflecting deeper integration of Southeast Asian supply chains with Chinese textile intermediates under RCEP. Nonwoven exports to Vietnam, Japan, and Indonesia grew over 20%, further confirming this trend.
Raw Material Costs and Outlook
Repeated Middle East geopolitical tensions in July-August pushed oil prices up before high-level wide-range fluctuations, strengthening cost support for chemical fibers. Polyester prices trended upward, though downstream purchasing willingness remained limited; nylon prices rose in steps; polypropylene raw materials fluctuated at highs; viscose staple fiber edged up on low inventory. The rise in raw material prices has not fully passed through to technical textile ex-factory prices — a direct cause of the sector's overall margin decline.
For buyers, supply stability is high for nonwovens and absorbent products, but room for price negotiation is narrowing; tire cord fabric and protective products may see periodic price competition, suitable for buyers with long-term needs to lock in contracts. For factories, the core contradiction is not insufficient orders but profits squeezed from both raw materials and competition — product mix upgrading is more urgent than capacity expansion. On the export side, emerging market demand for nonwovens and absorbent products continues to expand, but the complex trade environment is raising compliance costs and certification barriers.