Nonwovens are emerging as the most impressive profit engine in China's technical textiles industry. In the first five months of 2026, profits of nonwovens enterprises above designated size surged 9.9% year-on-year, while the overall industry profit still contracted by 3%—meaning the nonwovens segment not only outperformed the market but also stabilized the industry's fundamentals against the headwind.
Nonwovens Lead, Internal Divergence Intensifies
According to data from the National Bureau of Statistics, nonwovens output grew 9.5% year-on-year in the January-May period, with the growth rate accelerating by 5.6 percentage points compared to the same period last year. Tire cord fabric output also rose 3.8%. Behind the output acceleration is sustained demand from end-use sectors such as healthcare, wipes, and filtration materials, which are consuming nonwovens at an increasing intensity.
However, the industry's profit landscape is uneven. The operating profit margin of nonwovens was only 2.7%, up 0.2 percentage points year-on-year, but still the lowest among all sub-sectors. In contrast, other technical textiles (including construction and protective textiles) posted the highest operating margin of 5%, yet their total profits fell 11.5% year-on-year. This high-margin-but-shrinking-profit pattern indicates a structural adjustment of "volume contraction with stable prices" in this segment, where order volumes are narrowing but remaining orders carry relatively higher added value.
The tarpaulin and canvas sector saw revenue grow 8.5% but profits drop 5.7%, with operating margin sliding 0.6 percentage points to 4.2%. These figures point to a classic signal: cost-side pressures are eroding the pass-through efficiency of end-product prices. In fact, raw material price volatility has been one of the core variables facing the industry at this stage.
Export Growth Steady, Market Structure Shifts Toward Belt and Road
China Customs data shows that technical textiles exports reached $18.81 billion in the first five months of 2026, up 5.3% year-on-year, while imports stood at $2.28 billion, up 3.1%, widening the trade surplus. Although export growth did not explode, it is resilient against the backdrop of low global growth and high inflation.
By category, nonwovens exports hit $1.93 billion, up 10.7%, with export volume reaching 770,000 tons, up 13.4%. Volume growth outpacing value growth suggests unit export prices have softened slightly, possibly reflecting a strategy of exchanging price for market share overseas. Coated industrial fabrics ranked first in export value at $2.19 billion, but growth was only 1%, indicating a stock competition phase. Absorbent textiles (diapers, sanitary napkins) exported $1.76 billion, up 10.7%, and wet wipes exports surged 14.7%, reflecting rapidly growing overseas demand for personal care technical textiles.
In terms of market structure, the U.S., Vietnam, and Japan remained the top three destinations, with exports of $2.21 billion, $1.48 billion, and $940 million, growing 3.5%, 8.3%, and 0.9% respectively. Notably, exports to Belt and Road countries totaled $11.34 billion, up 5.5%, accounting for about 60% of total industry exports. This proportion indicates that the overseas market focus of China's technical textiles has shifted from traditional Western markets to emerging economies, as supply chain "decentralization" reshapes the trade landscape.
Raw Material Logic Shifts: Geopolitical Premium Fades, Fundamentals Return
In June 2026, international oil prices dropped sharply, driven by the easing of U.S.-Israel-Iran tensions, improved navigation in the Strait of Hormuz, and plans by Iraq and other producers to accelerate output increases. This change directly impacted the chemical fiber feedstock side: polyester prices fell, nylon filament ran weak, polypropylene prices began a downward channel, and only viscose staple fiber oscillated upward due to coexisting cost support and pressure.
For technical textiles companies, falling raw material prices should be a positive, but the retreat of geopolitical premiums means the trading logic is shifting from "scramble for materials, hoard inventory" to "procure on demand, cut costs." Companies that signed long-term contracts when raw materials were high may face inventory impairment risks, while those with flexible procurement and strong supply chain management stand to repair profit margins during the downward cycle.