Nonwoven output grew at nearly double-digit rates, as China's technical textiles sector is proving its resilience with hard data.
Output and Profitability: Divergence Widens, Nonwovens Shine
National Bureau of Statistics data shows that from January to May 2026, nonwoven output by above-scale enterprises rose 9.5% year-on-year, accelerating by 5.6 percentage points from the same period in 2025. Tire cord fabric output grew 3.8%, also picking up pace. Behind the output surge lies sustained demand from medical, filtration, and hygiene product sectors.
Overall industry profitability showed signs of improvement. Revenue turned positive, growing 1.7% year-on-year. Though total profits still fell 3%, the decline narrowed significantly. The operating profit margin held steady at 3.6%, slipping just 0.2 percentage points, indicating firms maintained basic profitability despite cost pressures.
By sub-sector, nonwovens outperformed, with revenue and profit up 2.5% and 9.9% respectively, and margin improving 0.2 ppts to 2.7%. Tarpaulin and canvas saw revenue jump 8.5% but profits drop 5.7%, a classic case of revenue growth without profit expansion. Textile belts and tire cord fabric posted declines in both revenue (-4.1%) and profit (-2.4%), reflecting weak demand from traditional industrial applications. Other technical textiles (construction, protective) achieved the highest margin at 5%, but total profits plunged 11.5%, showing high margins cannot fully offset demand contraction.
Trade Pattern: Exports Steady, Belt and Road Share Hits 60%
China Customs data shows technical textile exports reached $18.81 billion from January to May, up 5.3% year-on-year; imports stood at $2.28 billion, up 3.1%, widening the trade surplus. Key growth drivers were nonwovens, absorbent textiles, and industrial glass fiber products.
Nonwoven exports hit $1.93 billion (+10.7%), with volume reaching 770,000 tonnes (+13.4%), indicating strong overseas demand that Chinese supply chains still dominate. Absorbent textiles (diapers, sanitary pads) exported $1.76 billion (+10.7%), and wet wipes $490 million (+14.7%), reflecting robust overseas demand for personal care consumables. Industrial glass fiber products exported $1.02 billion (+12.2%), benefiting from demand in renewable energy and construction composites.
Notably, the largest export category—coated industrial fabrics—grew only 1%, lagging the industry average, suggesting substitution competition or structural demand shifts.
By destination, the US, Vietnam, and Japan ranked top three, with exports of $2.21 billion (+3.5%), $1.48 billion (+8.3%), and $940 million (+0.9%) respectively. Exports to Belt and Road countries reached $11.34 billion (+5.5%), accounting for about 60% of total exports. This rising share signals a strategic shift towards emerging markets, reducing dependence on any single economy.
Cost Variable: Oil Price Plunge Reshapes Fiber Pricing Logic
In June 2026, international crude prices slumped as geopolitical risk premiums unwound—US-Israel-Iran tensions eased, Hormuz Strait navigation improved, and Iraq and other producers planned accelerated output increases. This directly hit chemical fibers: polyester filament and staple prices fell, nylon filament weakened, and polypropylene fiber entered a downtrend. Only viscose staple fiber saw volatile gains due to cost support and demand tug-of-war.
For technical textile firms, the easing of raw material cost pressure offers near-term profit relief, but the oil price drop also signals potential global demand weakness. The trading logic for chemical fibers is shifting from geopolitical premiums to supply-demand fundamentals. If demand fails to recover in H2, price cuts to clear inventories could squeeze processing margins.