In the first five months of 2026, China's technical textiles industry delivered a mixed but overall stable performance. While nonwoven output growth approached double digits, the industry's overall profit decline narrowed to single digits, and exports exceeded $18.8 billion. These figures reflect a dual game of structural demand recovery and upstream raw material cost fluctuations.
Output and Efficiency: Nonwovens Lead, Profit Divergence Intensifies
Production data is most intuitive. According to publicly available data from the National Bureau of Statistics, from January to May, output of nonwovens by above-scale enterprises grew 9.5% year-on-year, accelerating by 5.6 percentage points compared to the same period in 2025; cord fabric output increased 3.8%, with growth also rising 3.4 percentage points. This indicates a sustained recovery in capacity utilization, especially for nonwovens as basic materials for masks, wipes, and filter media, directly reflecting the demand resilience of hygiene and protective categories.
Signals from the profit side are more complex. Industry-wide operating revenue turned from decline to growth, up 1.7% year-on-year, but total profit still fell 3%, with an operating profit margin of only 3.6%, down 0.2 percentage points from the previous year. Breaking down sub-sectors reveals significant disparities: the nonwovens industry saw total profit surge 9.9%, the only sub-sector achieving positive profit growth, with an operating profit margin of 2.7% but improving 0.2 percentage points; the tarpaulin and canvas industry saw revenue grow 8.5% but profit fall 5.7%, with a profit margin of 4.2% declining 0.6 percentage points; the textile tape and cord fabric industry experienced declines in both revenue and profit, down 4.1% and 2.4% respectively.
This pattern of "revenue growth without profit growth" or "volume up but margin thin" reflects intensified internal competition and poor cost pass-through. Notably, the "other technical textiles" industry (including construction and protective textiles) boasted the highest operating profit margin at 5%, yet total profit plummeted 11.5%, indicating that high-value-added categories also face demand volatility risks.
Export Landscape: Nonwovens Volume and Price Rise, Emerging Markets Become Growth Poles
In international trade, exports have become a ballast for stable growth. According to China Customs data, from January to May, technical textile exports reached $18.81 billion, up 5.3% year-on-year; imports were $2.28 billion, up 3.1%. Export growth outpaced imports, widening the trade surplus.
By product category, industrial coated fabrics topped the list with $2.19 billion in exports, but growth was only 1%, showing signs of fatigue. Nonwovens followed closely with $1.93 billion, surging 10.7%, with export volume reaching 770,000 tons, up 13.4%, demonstrating simultaneous volume and price growth. Absorbent textiles (diapers, sanitary napkins, etc.) exported $1.76 billion, up 10.7%, together with wet wipes ($490 million, up 14.7%), forming a strong engine for personal care exports.
- Industrial glass fiber products: $1.02 billion, up 12.2%
- Wiping cloth: $710 million, up 4.3%
- Felt and tents: $1.85 billion, down 1.2%
- Canvas: down 1.4%
By destination, the US ($2.21 billion), Vietnam ($1.48 billion), and Japan ($940 million) remained the top three, but growth rates diverged: exports to Vietnam grew 8.3%, to the US 3.5%, and to Japan only 0.9%. More notably, exports to Belt and Road Initiative countries reached $11.34 billion, up 5.5%, accounting for about 60% of total industry exports. This indicates that the export focus of technical textiles is accelerating toward emerging markets in Southeast Asia, Central Asia, and the Middle East, further strengthening the trend of supply chain regionalization.
Raw Material Costs: Geopolitical Premium Fades, Chemical Fiber Pricing Returns to Fundamentals
In June 2026, international oil prices plummeted as tensions eased between the US, Israel, and Iran, improving navigation through the Strait of Hormuz, while Iraq and other oil-producing countries planned to accelerate production increases. This change directly impacted upstream raw materials for technical textiles. During the month, polyester prices weakened, nylon filament ran weak, and polypropylene prices opened a downward channel. Only viscose staple fiber experienced volatile price increases due to cost support and demand pressure.
For the industry, the shift from geopolitical premium to supply-demand fundamentals means downstream buyers need to adjust procurement strategies. Companies that hoarded chemical fiber raw materials due to high oil prices may face inventory impairment risks, while those able to flexibly switch raw material formulas or hold long-term contracts may gain relative cost advantages.