Nonwovens output surged 9.5% year-on-year, yet total profit jumped an even more impressive 9.9%—the first five months of 2026 delivered a mixed bag for China's technical textile industry. Overall revenue turned positive, but the profit margin remained at just 3.6%, with several sub-sectors still seeing shrinking profits.
Faster Output Growth, Divergent Profitability
According to the National Bureau of Statistics, output of nonwovens and tire cord fabrics by enterprises above designated size grew 9.5% and 3.8% respectively from January to May, accelerating significantly from the same period last year. However, this output expansion did not translate into across-the-board profit growth. Overall industry profit fell 3% year-on-year, and the operating profit margin decreased 0.2 percentage points, indicating persistent pressure from rising costs.
Nonwovens stood out as the brightest spot: revenue up 2.5%, total profit up 9.9%, and operating profit margin improving to 2.7%. This was driven by strong downstream demand for absorbent hygiene products and wipes. In contrast, the tire cord fabric sector saw revenue drop 4.1% and profit fall 2.4%, despite a slight margin uptick. The tarpaulin sector posted 8.5% revenue growth but profit declined 5.7%, highlighting cost pressures.
Export Resilience, Shift Toward Emerging Markets
Customs data shows technical textile exports reached $18.81 billion in the first five months, up 5.3% year-on-year. Nonwoven fabric exports hit $1.93 billion, up 10.7%, with export volume reaching 770,000 tons, a 13.4% increase—both volume and value rising. Absorbent textile and wet wipe exports grew 10.7% and 14.7% respectively, reflecting sustained overseas demand for disposable hygiene products.
The export market structure is noteworthy: the U.S., Vietnam, and Japan were the top three destinations, but exports to Vietnam grew 8.3%, faster than to the U.S. and Japan. Exports to Belt and Road countries reached $11.34 billion, accounting for 60% of total exports, up 5.5% year-on-year, indicating an accelerating shift toward emerging markets.
Raw Material Cost Risks
International oil prices fell sharply in June, as geopolitical premiums receded. Polyester, nylon filament, and polypropylene prices weakened. For technical textile companies heavily reliant on chemical fibers, this could lower costs in the short term, but viscose staple fiber prices are still rising due to cost support, creating divergent trends.
The industry's trading logic is shifting from geopolitical risks to supply-demand fundamentals. For buyers, this means greater bargaining power, but inventory devaluation risks from volatile raw material prices must be managed.