In the first four months of 2026, China's technical textiles industry presented a mixed picture: output grew, but profits shrank. Nonwoven output from above-scale enterprises rose 6.4% year-on-year, yet the industry's overall operating profit margin dropped from 3.7% to 3.4%. This divergence indicates that increased production is not directly translating into higher profits, as cost-side and price-side pressures intensify.
Output Growth Amid Profit Divergence
According to the National Bureau of Statistics, from January to April, operating revenue of above-scale technical textiles enterprises fell 0.4% year-on-year, while total profits plunged 9.6%. Among six sub-sectors, only ropes, cables, and cords achieved both revenue and profit growth, up 6.3% and 1.6% respectively. The tarpaulin and canvas sector saw revenue rise 9.2% but profits drop 9.8%, a classic case of "revenue growth without profit growth."
The nonwovens sector, the largest sub-sector, saw revenue decline 1% but profits edge up 0.5%, with a meager 2.5% profit margin. The textile belts and tire cord sector faced greater pressure, with revenue and profits down 4.6% and 16% respectively, and margins falling to 3%. The construction and protective textiles segment saw profits drop 16.4%, though margins remained relatively high at 5%.
Export Resilience: Nonwovens and Hygiene Products Lead
China Customs data shows exports reached $14.82 billion in the period, up 4.6% year-on-year. Nonwoven exports were particularly strong, with value and volume reaching $1.5 billion and 604,000 tons, up 8.4% and 12.9% respectively, indicating robust overseas demand. Disposable hygiene products (diapers, sanitary napkins) saw exports of $1.4 billion, up 12.3%, while wet wipes grew 15.6%, highlighting the overseas expansion potential of consumer-grade technical textiles.
By destination, the US, Vietnam, and Japan were the top three. Exports to the US fell 2.9% to $1.75 billion; to Vietnam rose 5.6% to $1.16 billion; to Japan fell 2% to $730 million. Notably, exports to Belt and Road Initiative countries reached $8.9 billion, up 5.6%, accounting for 60% of total exports, underscoring the stabilizing role of emerging markets.
Chemical Fiber Costs: The Key Variable
Raw material price volatility was a critical factor affecting profits. From January to April, major chemical fiber raw material prices remained high. In March, geopolitical tensions in the Middle East and post-holiday restocking pushed up prices across the chemical fiber chain. By April-May, expectations of US-Iran talks and supply stabilization policies led to price divergence.
Polyester staple fiber and nylon saw price declines due to ample domestic supply. In contrast, viscose staple fiber and lyocell prices strengthened due to low inventories, dissolving pulp cost support, and green demand. This volatility significantly raised production costs, especially for low-margin nonwoven and tire cord enterprises. The risk of further fluctuations remains as international energy and shipping markets stay unstable.