The technical textiles industry delivered a 'stable but divergent' performance in the first five months of 2026. Industrial value-added for above-scale enterprises maintained medium-speed growth, but profitability gaps across sub-sectors are widening.
Production Accelerates, Nonwovens Lead
National Bureau of Statistics data shows nonwoven fabric output grew 9.5% year-on-year from January to May, accelerating by 5.6 percentage points versus the same period in 2025. Tire cord fabric output rose 3.8%, also 3.4 percentage points faster. This signals recovering capacity utilization, especially in nonwovens, a core material for medical, hygiene, and filtration sectors.
Operating revenue for the sector grew 1.7%, turning positive, but total profit still fell 3%, with operating profit margin at 3.6%. Input cost and labor pressures persist. Nonwovens stood out: revenue up 2.5%, profit surging 9.9%, and margin improving to 2.7%—almost the only sub-sector with positive profit growth, reflecting stronger pricing power.
Profit Divergence: Tarpaulins Gain Revenue but Lose Profit, Tire Cord Under Pressure
In contrast, tarpaulin and canvas saw revenue up 8.5% but profit down 5.7%, margin slipping 0.6 percentage points. Textile belts and tire cord experienced both revenue and profit declines of 4.1% and 2.4% respectively. Other technical textiles (construction, protective) had the highest margin at 5%, but profit plummeted 11.5%. Rope, cordage, and netting profit fell 9.7%. The data reveals a clear 'winners take all' dynamic.
Exports Grow Steadily, Nonwovens and Absorbent Products as Dual Engines
China Customs reports exports of $18.81 billion, up 5.3%; imports $2.28 billion, up 3.1%. Coated fabrics topped export value at $2.19 billion but grew only 1%. Nonwovens reached $1.93 billion, up 10.7%, with volume of 770,000 tons, up 13.4%. Absorbent products (diapers, sanitary pads) hit $1.76 billion, up 10.7%; wet wipes $490 million, surging 14.7%.
Top destinations: US ($2.21B), Vietnam ($1.48B), Japan ($0.94B). Exports to Vietnam grew 8.3%, reflecting intermediate goods competitiveness amid supply chain shifts. Exports to Belt and Road countries reached $11.34 billion, about 60% of total, up 5.5%.
Raw Materials: Geopolitical Premium Fades, Fundamentals Return
In June, international oil prices fell sharply as US-Israel-Iran tensions eased and Hormuz Strait navigation improved. Polyester, nylon, and polypropylene prices weakened; viscose staple fiber fluctuated upward. The geopolitical premium is receding, and the chemical fiber market is slowly shifting back to supply-demand fundamentals. This may open a procurement window but also carries inventory devaluation risk if demand doesn't recover.