The resilience of China's technical textiles industry is clearly reflected in the data from the first five months of 2026. Despite external demand pressure and narrowing profit margins, nonwoven fabric output and exports both achieved double-digit growth, becoming the key drivers of the sector's upward momentum.
Production: Nonwovens Lead, Tire Cord Steady
According to the National Bureau of Statistics, output of nonwovens by enterprises above designated size grew 9.5% year-on-year in January-May, with the growth rate accelerating 5.6 percentage points from the same period last year. Tire cord fabric output increased 3.8%, with growth picking up 3.4 percentage points. The acceleration in nonwoven output signals sustained demand from downstream sectors such as hygiene materials, filtration media, and geotextiles. The growth in tire cord is closely linked to the recovery of the tire and automotive industries, indicating a rebound in the end-use manufacturing sector.
In terms of profitability, industry revenue turned positive, growing 1.7% year-on-year, while total profit narrowed its decline to 3%, with an operating profit margin of 3.6%. These figures suggest that companies have managed to hold their ground through capacity optimization and cost control amid intense price competition.
Segmented Performance: Tarpaulins Shine, Protective Textiles Under Pressure
Performance varied significantly across sub-sectors. Revenue for tarpaulins and canvas grew 8.5% year-on-year, leading the industry, driven by demand from outdoor equipment, logistics warehousing, and temporary structures. The nonwoven sector saw profit surge 9.9% alongside a 2.5% revenue increase, indicating improved profitability. In contrast, the rope, cordage, and netting sector saw profit drop 9.7%, and the textile belt and tire cord sector recorded a 4.1% revenue decline, reflecting intense price competition in industrial components. Other technical textiles (including construction and protective textiles) saw a mere 0.2% revenue uptick but a steep 11.5% profit decline, highlighting severe cost pressures despite maintaining the highest operating profit margin of 5%.
Exports: Steady Growth, Emerging Markets Key
Customs data shows total technical textile exports reached $18.81 billion in January-May, up 5.3% year-on-year. Nonwoven exports hit $1.93 billion, up 10.7%, with export volume of 770,000 tons, up 13.4%, indicating that China's supply chain advantages remain intact despite overseas capacity shifts. Absorbent textile products (diapers, sanitary napkins) exported $1.76 billion, up 10.7%, benefiting from demographic dividends in Southeast Asia and Africa. Wet wipes exports reached $490 million, up 14.7%, reflecting sustained high demand for personal care products.
The top three export destinations were the United States ($2.21 billion, +3.5%), Vietnam ($1.48 billion, +8.3%), and Japan ($940 million, +0.9%). The faster growth in Vietnam indicates that Chinese technical textiles are increasingly embedded in Vietnam's textile and hygiene product supply chains. Exports to Belt and Road countries reached $11.34 billion, accounting for 60% of total exports, growing 5.5%, making emerging markets the industry's export backbone.
Raw Materials: Oil Price Decline Shifts Trading Logic
In June, international oil prices fell sharply as geopolitical premiums faded, leading to weakness in polyester, nylon filament, and polypropylene prices. Viscose staple fiber prices oscillated upward due to cost support and demand pressure. For technical textile enterprises, the short-term relief in raw material costs is welcome, but inventory devaluation risks from sustained price declines must be managed. The market's trading logic is gradually shifting from geopolitical risk to supply-demand fundamentals, with the second half's focus on whether downstream orders can absorb raw material declines.
Challenges and Outlook: Profit Recovery Remains Key
Despite positive signals in the first five months, the industry's overall profit margin remains low at 3.6%, below the manufacturing average. The fact that total profit has yet to turn positive means many companies are still in a 'revenue growth without profit growth' dilemma. For the second half, three variables warrant attention: the secondary impact of international oil prices on chemical fiber costs, trade policy uncertainty after the US election, and whether domestic infrastructure and consumption recovery can sustain growth in categories like tarpaulins and nonwovens.