The performance of China's technical textile industry in the first five months of 2026 sends a clear signal: despite macro pressures, the sector is carving out a resilient growth trajectory through product mix adjustments and market diversification.
Output and Profits: Nonwovens Lead, Sub-sector Divergence Deepens
According to the National Bureau of Statistics, output of nonwovens by enterprises above designated size surged 9.5% year-on-year, accelerating by 5.6 percentage points from the same period in 2025. Tire cord fabric output grew 3.8%, also picking up by 3.4 percentage points. The faster output growth reflects recovering downstream demand, particularly in medical hygiene, filtration, and packaging sectors, keeping nonwoven production lines running at higher utilization rates.
On the profit side, industry-wide operating revenue turned positive, rising 1.7% year-on-year, while total profit decline narrowed to 3%, with an operating profit margin of 3.6%. However, sub-sector performance varied sharply. Nonwovens stood out with revenue up 2.5% and total profit surging 9.9%, achieving a margin of 2.7%—a 0.2 percentage point improvement. This suggests nonwoven producers have found a balance between cost control and product premium.
In contrast, the rope, cord, and cable sector saw revenue edge up 1.8% but profit fall 9.7%, with margin dropping to 3.0%. The tarpaulin and canvas sector revenue rose 8.5% but profit declined 5.7%, margin at 4.2%. Both exhibit a classic 'revenue growth without profit growth' dilemma, squeezed by raw material cost volatility and buyer pricing pressure.
Most notably, the 'other technical textiles' category, covering construction and protective textiles, posted the highest industry margin at 5.0%, confirming the pricing power of high-value, high-barrier products in a weak market.
Exports: Steady Growth, Shift Toward Higher Value
China Customs data show technical textile exports reached $18.81 billion in Jan-May 2026, up 5.3% year-on-year. Imports were $2.28 billion, up 3.1%, widening the trade surplus.
By product, coated industrial fabrics remained the largest export category at $2.19 billion, but growth was only 1%, indicating market saturation. Nonwovens ranked second with $1.93 billion, up 10.7%, and export volume hit 770,000 tons, up 13.4%, making it the key growth driver. Absorbent hygiene products (diapers, sanitary pads) and wet wipes grew 10.7% and 14.7% respectively, signaling strong overseas demand for personal care textiles.
Industrial glass fiber textiles exports reached $1.02 billion, up 12.2%, leading growth among major categories. This reflects sustained demand from new energy and infrastructure sectors for high-performance composites. Rope, cordage, artificial leather base fabric, and packaging textiles all achieved growth, while canvas and tarpaulin/tent exports dipped slightly.
Market Landscape: Belt and Road as Anchor, US Still Significant
By destination, the US, Vietnam, and Japan were top three, with exports of $2.21 billion, $1.48 billion, and $0.94 billion respectively. Exports to the US grew 3.5%, slower than Vietnam's 8.3%, reflecting some order shifts to ASEAN.
Meanwhile, exports to Belt and Road countries totaled $11.34 billion, up 5.5%, accounting for about 60% of total exports. This share has risen further, confirming that Belt and Road markets have evolved from supplementary channels to the industry's core base. For trading firms, deepening presence in Southeast Asia, Central Asia, and the Middle East is no longer optional but a strategic imperative.
Raw Materials: Oil Price Drop Eases Costs, but Logic Shifts
In June, international oil prices fell sharply as tensions between the US, Israel, and Iran eased, the Strait of Hormuz improved, and Iraq planned output increases. Polyester prices weakened, nylon filament softened, and polypropylene prices started a downward trend. Viscose staple fiber prices oscillated upward due to cost support and demand.
For technical textile manufacturers, lower oil prices mean阶段性 lower feedstock costs for chemical fibers, easing pressure from the past two years. But the deeper shift is that market logic is moving from geopolitical premiums to supply-demand fundamentals. Future price volatility will depend more on actual demand recovery rather than event-driven spikes. Companies should guard against inventory devaluation risks if demand recovery disappoints.