In the first four months of 2026, China's technical textile industry delivered a mixed performance. Revenue of enterprises above designated size edged down 0.4% year-on-year, while total profit plunged 9.6%, with the operating margin falling to 3.4%—a 0.3 percentage point drop from the same period last year. This indicates the industry is caught in a squeeze between rising costs and weak demand.
Stable Output but Divergent Profitability
From the production side, major product output maintained steady growth. According to the National Bureau of Statistics, nonwoven fabric output grew 6.4% year-on-year, and cord fabric output rose 2%, though the growth rate slowed from Q1. However, output growth did not fully translate into improved profitability.
- Nonwovens: revenue down 1%, but profit up 0.5%, operating margin 2.5%, basically flat.
- Rope, cable, cordage: revenue up 6.3%, profit up 1.6%, margin 3%, down 0.1 percentage point.
- Textile belts and cord fabric: revenue down 4.6%, profit down 16%, margin 3%, down 0.4 points.
- Tarpaulins and canvas: revenue up 9.2%, profit down 9.8%, margin 4.1%, down 0.9 points.
- Other technical textiles (construction, protective): revenue down 2.9%, profit down 16.4%, margin 5%, down 0.8 points.
The "revenue growth without profit growth" phenomenon is particularly acute in the tarpaulins segment, where a 9.2% revenue increase was accompanied by a 9.8% profit decline, highlighting severe cost erosion. Cord fabric and construction/protective textiles both saw profit drops exceeding 16%, reflecting weak downstream demand and intensified competition.
Export Resilience, Nonwovens as Growth Engine
In international trade, China Customs data shows technical textile exports reached $14.82 billion, up 4.6% year-on-year; imports were $1.81 billion, up 3.1%. Export growth was driven by nonwovens, disposable hygiene products, and wipes.
- Nonwoven fabric exports: $1.5 billion, up 8.4%; volume 604,000 tons, up 12.9%.
- Disposable hygiene products (diapers, sanitary napkins): $1.4 billion, up 12.3%.
- Wet wipes: $380 million, up 15.6%; dry wipes: $560 million, up 3.2%.
- Coated fabrics: $1.74 billion, up 1.5%, still the largest export category.
- Tarpaulins and tents: $1.51 billion, down 2.9%.
The US, Vietnam, and Japan remained the top three destinations. 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 countries reached $8.9 billion, up 5.6%, accounting for 60% of total exports. This indicates an accelerated market shift amid geopolitical risks, with Southeast Asia and Central Asia emerging as new growth poles.
Raw Material Volatility, Cost Control Key
From January to April 2026, major chemical fiber raw material prices remained high. In March, prices surged due to escalating Middle East conflict, blocked Strait of Hormuz shipping, and post-holiday restocking demand. From April to May, optimism over US-Iran talks and supply risk relief, coupled with government price stabilization policies, led to divergent price trends.
- Polyester staple fiber and nylon: ample domestic supply, prices fell.
- Viscose staple fiber and lyocell: low inventories, supported by dissolving pulp costs and green demand, producers held firm on pricing, prices rose.
The sharp fluctuations in raw material prices significantly raised production costs and management pressure. While market risk appetite has somewhat recovered, uncertainties in international energy and shipping markets persist. Enterprises must closely monitor market dynamics and scientifically manage inventory levels.