In the first four months of 2026, China's industrial textile industry posted gains in output and exports, but profits painted a starkly different picture: total profits for above-scale enterprises fell 9.6% year-on-year, with the operating profit margin dropping to 3.4%. This divergence between output and profit highlights the dual squeeze of high raw material costs and weak pricing power.
The Paradox of Output Growth and Profit Contraction
According to the National Bureau of Statistics, nonwoven fabric output grew 6.4% year-on-year from January to April, while cord fabric output rose 2%, though at a slower pace than Q1. This output expansion failed to translate into profit growth: industry-wide operating revenue edged down 0.4%, while total profits plunged 9.6%. By segment, the tarpaulin and canvas industry saw revenue jump 9.2% but profits fall 9.8%, with the profit margin narrowing 0.9 percentage points to 4.1%. The textile belt and cord fabric segment experienced both revenue and profit declines, with profits dropping 16%.
The only segment to post a profit increase was rope, cordage, and netting, with revenue up 6.3% and profits up 1.6%, though its profit margin still fell 0.1 percentage points. Nonwoven fabric profits rose 0.5%, but the margin remained low at 2.5%. These figures indicate that most sub-sectors face a "revenue growth without profit growth" or even "revenue and profit decline" scenario, with cost pressures as the main driver.
Export Bright Spots: Nonwovens and Hygiene Products Lead
Customs data shows industrial textile exports reached $14.82 billion from January to April, up 4.6% year-on-year, while imports were $1.81 billion, up 3.1%. Export growth was mainly driven by nonwovens and disposable hygiene products: nonwoven fabric exports hit $1.5 billion (up 8.4%), with volume surging 12.9% to 604,000 tons; disposable hygiene product exports were $1.4 billion, up 12.3%; wet wipes exports jumped 15.6% to $380 million.
In contrast, traditional categories showed mixed results. Industrial coated fabric exports were $1.74 billion, up just 1.5%; tarpaulins and tents fell 2.9% to $1.51 billion; canvas and artificial leather base fabric exports edged down. By destination, the U.S. remained the largest market but declined 2.9% to $1.75 billion; exports to Vietnam rose 5.6% to $1.16 billion, reflecting supply chain relocation demand; exports to Japan fell 2%. Notably, exports to Belt and Road countries reached $8.9 billion, up 5.6%, accounting for 60% of total exports, providing a stabilizing force.
Raw Material Costs: Divergence Amid High Volatility
In March, escalating Middle East tensions and Strait of Hormuz shipping disruptions triggered a price surge across the chemical fiber chain. By April-May, as expectations of U.S.-Iran talks grew and domestic price stabilization policies took effect, prices diverged: polyester staple fiber and nylon fell due to ample domestic supply; viscose staple fiber and lyocell rose due to low inventories, dissolving pulp cost support, and green demand, with producers holding firm on prices.
This volatility has significantly raised production and operating costs. For downstream enterprises, just-in-time procurement has become mainstream, but price uncertainty complicates inventory management. While risk appetite has partially recovered, volatility risks in international energy and shipping markets persist, requiring companies to elevate cost control to a strategic priority.