Technical Textiles Show Resilience: Nonwovens Lead Growth Amidst Profit Divergence

The growth engine of China's technical textile industry is shifting. In the first five months of 2026, nonwoven fabrics emerged as the strongest segment, with output up 9.5% year-on-year and exports rising 10.7%. However, traditional sectors like ropes and tarpaulins faced profit pressures. Overall industry profit narrowed to a 3% decline, but internal divergence is clear.

Nonwovens: Volume and Price Growth Leader

According to the National Bureau of Statistics, from January to May, revenue of nonwoven fabric enterprises above designated size grew 2.5% year-on-year, while total profit surged 9.9%. The operating profit margin improved by 0.2 percentage points to 2.7%. Exports of nonwovens reached 770,000 tons, up 13.4%, with export value at $1.93 billion, up 10.7%. This growth is driven by downstream demand for wipes and hygiene products. Exports of wiping cloth and wet wipes grew 4.3% and 14.7% respectively, while absorbent textiles (diapers, sanitary pads) rose 10.7%.

Profit Divergence: Winners and Losers

The industry's overall operating profit margin was only 3.6%, down 0.2 percentage points, indicating that revenue growth is not translating into profit. Other technical textiles (construction, protective) had the highest margin at 5%, but profit fell 11.5%. Tarpaulin revenue grew 8.5% but profit dropped 5.7%. Ropes and cables saw revenue up 1.8% but profit down 9.7%. Textile belts and tire cord fabric saw both revenue and profit decline by 4.1% and 2.4% respectively. The only profit growth came from nonwovens, with a 9.9% increase.

Export Structure: Stable Traditional Markets, Growing Emerging Ones

China Customs data shows total technical textile exports reached $18.81 billion, up 5.3%. Top three destinations were the US ($2.21 billion, +3.5%), Vietnam ($1.48 billion, +8.3%), and Japan ($0.94 billion, +0.9%). Notably, exports to Belt and Road countries totaled $11.34 billion, up 5.5%, accounting for 60% of total exports. This indicates a shift from reliance on developed countries to diversified regions, with Southeast Asian and Middle Eastern infrastructure demand supporting coated fabrics and tarpaulins.

Raw Materials: Geopolitical Premium Fades, Fundamentals Return

In June, international oil prices fell sharply as tensions between the US, Israel, and Iran eased, navigation in the Strait of Hormuz improved, and Iraq planned to increase production. Polyester prices weakened, nylon filament ran weak, and polypropylene prices began a downward trend. Viscose staple fiber saw volatile prices due to conflicting cost support and demand pressure. The geopolitical premium is receding, and the trading logic for chemical fibers will refocus on supply-demand fundamentals. For technical textile companies, raw material cost uncertainty has decreased, but sustained end-demand will be key to profit improvement in the second half of the year.

Practical Recommendations

For Buyers - Monitor nonwoven capacity expansion; lock in long-term orders during current volume-price growth to avoid supply tightness in peak seasons. - Tarpaulin and rope sectors face profit pressure; suppliers may offer more room for negotiation—conduct centralized price inquiries in late Q3. - With polyester prices weakening, consider delaying orders for coated fabrics that rely on polyester to lower procurement costs.

For Exporters - With 60% of exports going to Belt and Road countries, prioritize local warehousing and channel development in Southeast Asia and the Middle East to reduce dependence on Western markets. - Nonwovens and wiping products are growing fast; develop differentiated products (e.g., biodegradable wipes, medical-grade wipes) to add value. - Monitor international oil price fluctuations; lock in raw material costs when prices are low for forward export orders.