The technical textile industry is in a transitional period with revenue recovery but incomplete profit repair. Data for the first five months of 2026 show that revenue of enterprises above designated size increased by 1.7% year-on-year, but total profits continued to decline, with the decline narrowing to 3%, and the operating profit margin only 3.6%. This signals that overall capacity utilization is recovering, but the squeeze between costs and prices has not been lifted, and the improvement in corporate profitability lags behind the pace of scale expansion.
Segment Divergence: Nonwovens Stand Out, Cord Fabrics and Tarpaulins Show Mixed Results
Segmentation reveals significant internal divergence. Nonwovens were the only sub-sector achieving both revenue and profit growth, with revenue and total profit up 2.5% and 9.9% respectively, and operating profit margin up 0.2 percentage points to 2.7%. Production volume of nonwovens increased 9.5% year-on-year, with growth accelerating by 5.6 percentage points from the same period last year, indicating strong demand in end-use applications such as absorbent materials, wipes, and filtration media.
In contrast, the cord fabric and textile tape sector saw revenue fall 4.1% and total profit drop 2.4%, reflecting weak demand from downstream tire and related industries. The tarpaulin and canvas sector achieved 8.5% revenue growth but total profit declined 5.7%, with operating profit margin down 0.6 percentage points, suggesting a 'revenue growth without profit improvement' dilemma, possibly due to incomplete cost pass-through or intensified price competition.
Other technical textiles, including construction and protective textiles, had the highest operating profit margin at 5%, but total profit fell 11.5%, indicating instability in high-margin demand structures. The rope, cordage, and netting sector saw profit decline 9.7%, with margin falling to 3%, showing weakening bargaining power in global supply chains.
Exports: Steady Growth with Structural Shift to Emerging Markets
Exports were one of the few bright spots in the first five months. Customs data show total exports of technical textiles reached $18.81 billion, up 5.3% year-on-year. Nonwoven fabric exports were $1.93 billion, up 10.7%, with volume reaching 770,000 tons, up 13.4%, indicating deepening overseas reliance on Chinese nonwovens.
Absorbent articles (diapers, sanitary napkins) exports were $1.76 billion, up 10.7%; wet wipes exports were $490 million, up 14.7%. The growth rates of these consumer-grade technical textiles significantly outpaced industrial coated fabrics (up 1%) and tarpaulins/tents (down 1.2%), reflecting rigid global demand for disposable hygiene products.
By destination, the US remained the largest market at $2.21 billion but grew only 3.5%; Vietnam ranked second at $1.48 billion with 8.3% growth, indicating Chinese technical textiles are being further processed in Southeast Asia. Exports to Belt and Road countries totaled $11.34 billion, accounting for 60% of total exports, up 5.5%, cementing emerging markets as the industry's export cornerstone.
Raw Materials: Crude Oil Collapse Breaks Cost Rigidity, Fiber Pricing Logic Shifts
In June 2026, international oil prices plunged sharply as the US-Israel-Iran situation eased, improving navigation through the Strait of Hormuz, and Iraq and other producers planned to accelerate output increases. This geopolitical premium retreat directly impacted chemical fiber raw materials: polyester and PET prices fell weakly, nylon filament ran weakly, and polypropylene prices began a downward channel. Only viscose staple fiber saw volatile price increases due to coexisting cost support and pressure.
For technical textile companies, this means the strategy of relying on raw material cost increases to maintain product prices is no longer sustainable. The chemical fiber industry's trading logic is shifting from geopolitical premium to supply-demand fundamentals. Downstream enterprises need to adjust procurement strategies—in a raw material price down-cycle, inventory management is more critical than capacity expansion.