The industrial textiles sector is undergoing a structural divergence. Data for the first five months of 2026 shows nonwovens as the absolute growth driver, while traditional sub-sectors like ropes and tarpaulins see profit contraction. Meanwhile, exports remain resilient, but the sharp drop in international oil prices in June is reshaping upstream cost expectations, which will accelerate transmission through the supply chain in the second half of the year.
Production Side: Nonwovens Accelerate Expansion
According to public data from the National Bureau of Statistics, from January to May 2026, nonwovens output by above-scale enterprises grew 9.5% year-on-year, with the growth rate accelerating by 5.6 percentage points compared to the same period in 2025. Cord fabric output grew 3.8%, up 3.4 percentage points. The double-digit growth in nonwovens indicates sustained demand expansion in downstream applications such as hygiene materials and filtration media. Notably, this growth occurred on a not-low base in 2025, suggesting substantial capacity utilization improvement rather than a mere base effect.
On the profitability front, revenue of above-scale enterprises turned positive, growing 1.7% year-on-year, but total profits still declined 3%, with an operating profit margin of only 3.6%. Profit recovery lags revenue growth, reflecting ongoing tension between cost pressures and product pricing power.
Sub-Sector Profit Divergence: Nonwovens Stand Out
Profit performance across sub-sectors shows significant divergence. Nonwovens was the only major sub-sector to achieve positive profit growth, with revenue and profit rising 2.5% and 9.9% respectively, and an operating margin of 2.7%, up 0.2 percentage points. Profit growth far exceeding revenue suggests that nonwovens companies improved profitability through product upgrades or cost control.
In contrast, the rope, cord, and cable sub-sector saw revenue up 1.8% but profits down 9.7%, with a margin of only 3%. Tarpaulin and canvas sub-sector revenue grew 8.5% but profits fell 5.7%, with a margin of 4.2% down 0.6 percentage points. The divergence between revenue and profit indicates fiercer price competition or poor cost pass-through in these segments. Textile belts and cord fabric saw revenue down 4.1% and profits down 2.4%, with weak demand as the main drag.
Other industrial textiles (construction, protective textiles, etc.) posted the highest industry margin of 5%, but profits fell 11.5%, indicating demand volatility even in high-value segments.
Exports Grow Steadily, Nonwovens and Absorbent Products Shine
China Customs data shows that from January to May 2026, industrial textiles exports reached $18.81 billion, up 5.3% year-on-year; imports were $2.28 billion, up 3.1%. Export growth is moderate, but structural highlights stand out.
Nonwovens exports were $1.93 billion, up 10.7%, with export volume reaching 770,000 tons, up 13.4%, indicating strong overseas demand. Absorbent hygiene products (diapers, sanitary napkins, etc.) exports were $1.76 billion, up 10.7%; wet wipes exports were $490 million, up 14.7%. These consumer-oriented products benefit from overseas restocking cycles and rising penetration in emerging markets.
Industrial coated fabrics remained the largest category with $2.19 billion in exports, but growth was only 1%, suggesting market saturation. Industrial glass fiber products exports reached $1.02 billion, up 12.2%, driven by new energy and infrastructure demand.
By destination, the US, Vietnam, and Japan were the top three markets, with exports of $2.21 billion, $1.48 billion, and $940 million respectively, up 3.5%, 8.3%, and 0.9%. Exports to Belt and Road countries reached $11.34 billion, up 5.5%, accounting for about 60% of total industry exports, effectively hedging single-market risks through diversification.
Chemical Fiber Cost Support Weakens, Trading Logic Shifts in H2
In June 2026, international oil prices fell sharply as geopolitical tensions eased and oil-producing countries planned to accelerate production. The Strait of Hormuz navigation continued to improve. Within the month, polyester and nylon filament prices weakened, polypropylene prices started a downward channel, while viscose staple fiber fluctuated upward due to conflicting cost support and pressure.
This means the 'geopolitical premium' that supported chemical fiber prices in H1 is rapidly fading, and market trading logic is gradually returning to supply-demand fundamentals. For industrial textiles companies, raw material costs are likely to shift downward in H2, but whether this translates into profit improvement depends on whether end demand can absorb the price cuts.