The resilience of China's technical textile industry is undergoing a stress test. Data from the first five months of 2026 reveals that while nonwoven fabric output surged 9.5% and exports neared $1.93 billion, overall industry profits remain under pressure.
Output vs. Profit: Nonwovens Shine, Divergence Deepens
According to the National Bureau of Statistics, from January to May, output of nonwoven fabrics by enterprises above designated size grew 9.5% year-on-year, accelerating 5.6 percentage points from the same period last year. Tire cord fabric output rose 3.8%, also faster by 3.4 percentage points. However, profit growth lagged. Industry-wide operating revenue edged up 1.7%, while total profit fell 3%, with an operating profit margin of 3.6%—down 0.2 percentage points.
Sub-sector performance varied sharply. Nonwovens saw revenue up 2.5% and profit surging 9.9%, with profit margin rising to 2.7%. This reflects robust demand in hygiene and filtration applications. In contrast, tarpaulins and canvas reported 8.5% revenue growth but a 5.7% profit decline, suggesting cost pressures or intensified competition. Ropes and cables saw profit drop 9.7%, while textile belts and tire cord fabric posted a 2.4% profit decline. Other technical textiles (construction, protective) achieved the highest profit margin of 5%, yet total profit still fell 11.5%.
What does this mean? The industry remains in a 'revenue up, profit down' cycle, but nonwovens have broken out, offering the most visible growth certainty.
Exports: Steady Growth, Shifting Destinations
China Customs data shows technical textile exports reached $18.81 billion, up 5.3%; imports were $2.28 billion, up 3.1%. Nonwoven fabric exports hit $1.93 billion (+10.7%), with volume at 770,000 tons (+13.4%). Coated fabrics led in value at $2.19 billion but grew only 1%, signaling market saturation.
Absorbent products (diapers, sanitary napkins) exported $1.76 billion (+10.7%), and wet wipes $490 million (+14.7%), highlighting overseas demand for disposable hygiene items. Tarpaulins and tents fell 1.2%, and canvas dropped 1.4%, possibly due to shifting outdoor consumption or Southeast Asian competition.
Top export destinations were the US ($2.21 billion, +3.5%), Vietnam ($1.48 billion, +8.3%), and Japan ($940 million, +0.9%). Exports to Belt and Road countries totaled $11.34 billion, up 5.5%, representing about 60% of total. Vietnam's rapid growth reflects supply chain adjustments but also warns of rising local competition.
Raw Materials: Geopolitical Premium Dissipates
In June, international oil prices fell sharply as tensions eased in the Middle East and Iraq planned output increases. This drove polyester and nylon filament prices lower, while polypropylene began a downward trend. Only viscose staple fiber rose due to cost support.
Lower raw material costs should theoretically boost profits, but most sub-sectors still saw margins shrink. The reason: capacity expansion outpaces demand growth, and downstream buyers retain strong bargaining power. The pricing logic is shifting from geopolitical risk to supply-demand fundamentals, promising fiercer price negotiations ahead.