Nonwoven output surged 9.5% year-on-year, yet the industry's overall profit grew by less than 1 percentage point—the first five months of 2026 present a classic picture of 'rising output without rising profits' for China's industrial textile sector. Revenue of above-scale enterprises inched up 1.7%, while total profits still fell 3%, with an operating profit margin of only 3.6%. Behind this contrast lies a sharp divergence among sub-sectors and a structural shift in the external market environment.
Output vs. Profit: Nonwovens Shine, Tire Cord Warms
According to the National Bureau of Statistics, nonwoven output by above-scale enterprises grew 9.5% year-on-year in Jan-May, accelerating 5.6 percentage points from the same period in 2025, becoming the core engine driving industry production. Tire cord output rose 3.8%, also accelerating but more moderately.
Profit performance, however, was not synchronized. The nonwoven sector saw revenue up 2.5% and profit growth of 9.9%, with operating margin improving to 2.7%—one of the few sub-sectors achieving both volume and profit gains. In contrast, the rope, cable, and cordage sector saw profits fall 9.7%; tarpaulins and canvas dropped 5.7%; and other industrial textiles (construction, protective) saw profits plunge 11.5%.
What does this divergence mean? Nonwovens' high growth benefits from sustained demand for hygiene materials and wipes, while engineering and protective textiles face pressure from slowing infrastructure investment and prolonged destocking cycles. For buyers, bargaining power and supply chain stability now vary significantly by product category.
Exports: Steady Growth, Shift Towards Belt & Road
Customs data shows industrial textile exports reached US$18.81 billion in Jan-May 2026, up 5.3% year-on-year. Imports totaled US$2.28 billion, up 3.1%, widening the trade surplus.
By product, nonwoven exports hit 770,000 tonnes, up 13.4%, with value growing 10.7%, showing strong volume-price momentum. Coated industrial fabrics ranked first by export value at US$2.19 billion, but growth was only 1%, indicating a mature market. Absorbent textiles (diapers, sanitary napkins) exported US$1.76 billion, up 10.7%; wet wipes reached US$490 million, up 14.7%—the fastest-growing sub-category.
Destination shifts are noteworthy. The US, Vietnam, and Japan remain top three markets, but growth rates diverge: exports to Vietnam grew 8.3%, to the US 3.5%, and to Japan only 0.9%. Exports to Belt and Road countries totaled US$11.34 billion, up 5.5%, accounting for nearly 60% of total exports. This indicates a clear pivot from traditional developed markets to emerging economies, diversifying geopolitical risk.
Raw Materials: Oil Price Drop Reshapes Cost Outlook
In June 2026, international oil prices fell sharply as Middle East geopolitical premiums receded. Improved navigation through the Strait of Hormuz and accelerated production plans by Iraq and other producers drove down polyester, nylon filament, and polypropylene prices. Only viscose staple fiber rose due to cost support and supply-demand dynamics.
For industrial textile companies, raw materials account for 60%-70% of production costs. Lower oil prices offer short-term profit relief. However, the trading logic is shifting from 'geopolitical premium' to 'supply-demand fundamentals,' meaning future price volatility will depend more on real downstream demand. Companies should adjust procurement rhythms to avoid overstocking during a price downtrend.