In the first four months of 2026, China's technical textiles industry delivered a mixed performance: output of nonwovens by above-scale enterprises grew 6.4% year-on-year, and tire cord fabric output rose 2%, but total industry profit fell 9.6%, with an operating profit margin of only 3.4%. This data combination reveals an industry experiencing a typical volume-growth-with-profit-squeeze cycle.
Output vs. Profit: A Growing Divergence
On the production side, major product categories maintained steady growth. Nonwovens, a key segment, saw 6.4% growth, indicating sustained downstream demand in hygiene, filtration, and construction. Tire cord fabric growth slowed to 2% from the first quarter, reflecting cooling demand from the tire industry.
Profit indicators painted a more troubling picture. Revenue dropped only 0.4%, but profit plunged 9.6%, with margin declining 0.3 percentage points. The main culprit was high raw material costs: chemical fiber prices surged in March due to geopolitical tensions and shipping disruptions. Though prices diverged in April-May—polyester staple fiber and nylon fell, while viscose staple fiber and Lyocell rose due to low inventories and cost support—enterprises were forced to adopt just-in-time purchasing, increasing management difficulty.
Sub-Sector Divergence: Who's Winning, Who's Struggling
Performance varied dramatically across segments, offering clear signals for supply chain players.
- **Tarpaulins and canvas**: Revenue grew 9.2% (fastest), but profit fell 9.8%, with margin down 0.9 points to 4.1%. This suggests intense price competition or rapid cost pass-through.
- **Ropes, cables, and cordage**: Revenue up 6.3%, profit up 1.6%, margin stable—indicating resilient demand from marine and fishing sectors.
- **Nonwovens**: Revenue down 1%, but profit up 0.5%, margin flat at 2.5%. The slight profit gain likely reflects product mix upgrades toward higher-value spunlace or spunbond products.
- **Textile belts and tire cord fabric**: Revenue down 4.6%, profit down 16%—the worst performer, reflecting weak auto and tire demand.
- **Other technical textiles (construction, protective)**: Revenue down 2.9%, profit down 16.4%, margin at 5%. Post-pandemic normalization and property sector downturn are dual drags.
Exports: Structural Opportunities Amid Growth
Exports were a bright spot. Total export value reached $14.82 billion, up 4.6%. Nonwovens exports surged 12.9% in volume and 8.4% in value, highlighting China's growing global competitiveness. Disposable hygiene products rose 12.3%, wet wipes 15.6%, benefiting from overseas consumers' shift toward cost-effective Chinese products.
By destination, exports to Vietnam grew 5.6%, while those to the US and Japan fell 2.9% and 2%, respectively. Notably, exports to Belt and Road countries accounted for 60% of total, growing 5.6%. This shift signals a strategic pivot from traditional Western markets to emerging ones, urging companies to accelerate channel building and localization in Southeast Asia, the Middle East, and Africa.