Technical Textiles Show Resilience: Nonwovens Output Up 9.5% in Jan-May 2026, Export Structure Accelerates Divergence

In the first five months of 2026, China's technical textiles industry delivered a report card of 'stable aggregate but accelerating internal divergence'. Nonwoven fabric output from above-scale enterprises surged 9.5% year-on-year, with growth accelerating by 5.6 percentage points compared to the same period in 2025. Tire cord fabric output grew 3.8%. However, profit divergence was more pronounced: the nonwovens sector saw total profits jump 9.9%, while rope, cable and cordage profits fell 9.7%, and tarpaulin profits dropped 5.7%. This indicates that beneath the overall resilience, competitive dynamics are diverging sharply across sub-sectors.

Output and Profits: Nonwovens Lead, Traditional Categories Under Pressure

The acceleration in nonwoven output is driven by strong export demand for absorbent hygiene products (diapers, sanitary pads) and wiping textiles. Customs data shows exports of these two categories grew 10.7% and 14.7% year-on-year respectively, directly boosting upstream nonwoven production. Meanwhile, the nonwoven sector's operating profit margin reached 2.7%, up 0.2 percentage points, suggesting relatively smooth cost pass-through.

In contrast, traditional categories like ropes, cables, and tarpaulins face clear profit pressure. Tarpaulin revenue grew 8.5%, but profits fell 5.7%, with the operating margin dropping 0.6 percentage points. This reflects the double squeeze of raw material price volatility and intensified end-product price competition. The tire cord fabric sector saw both revenue and profits decline, by 4.1% and 2.4% respectively, linked to slowing demand from the tire industry.

Another notable signal: 'other technical textiles' (construction, protective textiles, etc.) achieved the highest operating profit margin of 5%, but total profits fell 11.5%. High-margin categories experiencing volume contraction indicate structural demand adjustments in the high-end market—not all value-added products can sustain growth.

Export Markets: Belt and Road Becomes Main Engine, Product Mix Shifts

On the export side, technical textiles exports reached $18.81 billion in Jan-May, up 5.3% year-on-year. While the growth rate is not spectacular, structural changes are significant. The largest export category, coated industrial fabrics, grew only 1%, markedly slowing. Nonwoven fabric exports grew 10.7% in value and 13.4% in volume, showing 'volume up, price stable'. Absorbent hygiene products and wet wipes grew 10.7% and 14.7% respectively, indicating strong overseas demand for personal care and cleaning products.

Industrial glass fiber products exports hit $1.02 billion, up 12.2%, becoming one of the fastest-growing segments, driven by downstream wind power and construction demand. Canvas exports fell 1.4%, consistent with the profit decline in the domestic tarpaulin sector.

By destination, the US, Vietnam, and Japan were the top three markets, but growth rates diverged. Exports to Vietnam grew 8.3%, to the US 3.5%, and to Japan only 0.9%. More critically, exports to Belt and Road countries reached $11.34 billion, up 5.5%, accounting for about 60% of total exports. This means export growth is now deeply tied to emerging markets, with traditional Western markets playing a diminishing role.

Raw Material Logic Shift: Geopolitical Premium Fades, Supply-Demand Fundamentals Take Over

In June, international oil prices fell sharply as US-Israel-Iran tensions eased, shipping through the Strait of Hormuz improved, and oil producers like Iraq planned to accelerate output. This directly led to weak polyester and nylon filament prices, while polypropylene prices began a downward channel. Viscose staple fiber saw volatile price increases due to coexisting cost support and demand pressure.

For technical textile companies, lower raw material prices should theoretically ease cost pressures—but why are some categories still seeing profit declines? The key lies in equally intense end-product price competition. When raw materials fall, downstream customers often demand proportional price cuts, so profit margins do not expand. Only sub-sectors with technological barriers or brand premiums (e.g., high-end wiping materials in nonwovens) can defend their margins.

The trading logic for chemical fibers is now shifting from 'geopolitical premium' back to 'supply-demand fundamentals'. Companies need to reassess inventory management strategies: with reduced raw material volatility expectations, the risk of overstocking declines, but precisely matching downstream order rhythms becomes more critical.

Practical Recommendations

For Purchasers - Raw material procurement windows may extend: With geopolitical premiums fading, polyester and other prices are likely to stay low. Consider phased buying rather than one-time stockpiling to reduce capital tie-up. - Monitor nonwoven capacity expansion: Faster nonwoven output growth means looser supply, allowing room to negotiate lower prices for commodity-grade products. - High-end protective and construction textiles have the highest margins but contracting volumes: When sourcing these, check suppliers' order stability to avoid supply disruptions from demand fluctuations.

For Foreign Trade Enterprises - Prioritize emerging markets as the main growth battleground: Exports to Belt and Road countries already account for 60% and are growing faster than traditional markets. Focus on Southeast Asia, the Middle East, and Africa, especially for nonwovens and absorbent hygiene products. - Beware of potential US policy risks: Although exports to the US grew 3.5% in Jan-May, trade policy uncertainty increases during US election years. Diversify export destinations to reduce single-market dependency. - Tilt product mix toward 'volume up, price stable' categories: Nonwovens, wiping cloths, and wet wipes show good volume-price coordination, while coated fabrics are slowing. Adjust product lines toward high-growth categories.