China's technical textiles industry delivered a mixed performance in the first five months of 2026. According to data from the National Bureau of Statistics and Customs, output of nonwovens by enterprises above designated size surged 9.5% year-on-year, with the growth rate accelerating 5.6 percentage points from the same period last year. Profit for the segment jumped 9.9%, making it the standout performer. However, profits for ropes, cables, and tarpaulins continued to decline, and overall industry profit fell 3%, showing uneven recovery.
Nonwovens Lead, Profit Divergence Intensifies
Nonwovens were the brightest spot. Revenue rose 2.5%, and profit soared 9.9%, lifting the operating profit margin to 2.7%, up 0.2 percentage points. Faster output and profit improvement indicate solid demand in hygiene materials and filtration applications. In contrast, profit for ropes, cables, and cordage fell 9.7%, with a margin of only 3%; tarpaulins saw profit drop 5.7%, and their margin of 4.2% declined 0.6 percentage points. Other technical textiles (construction, protective) suffered the steepest profit decline of 11.5%, yet their 5% margin remained the highest in the industry, underscoring the volatility of high-value products.
Textile belts and tire cord fabric were the only sub-sector to see both revenue and profit decline, with revenue down 4.1% and profit down 2.4%. This reflects destocking and weak demand in the downstream tire market. Although tire cord output grew 3.8%, the pace was only 3.4 percentage points faster than last year, failing to translate into better earnings.
Exports Grow Steadily, Shifting Toward Emerging Markets
Total exports reached $18.81 billion, up 5.3%. Coated fabrics led at $2.19 billion but grew only 1%, indicating sluggish momentum in traditional categories. Nonwovens exports hit $1.93 billion, up 10.7%, with volume reaching 770,000 tons, up 13.4%, confirming capacity expansion and overseas demand. Absorbent products (diapers, sanitary pads) exported $1.76 billion, up 10.7%; wipes exports grew 14.7%, the fastest among categories. Glass fiber products exports rose 12.2% to $1.02 billion, benefiting from global demand in wind energy and construction.
By destination, the U.S., Vietnam, and Japan were the top three markets, with exports of $2.21 billion, $1.48 billion, and $0.94 billion, growing 3.5%, 8.3%, and 0.9%, respectively. Exports to Belt and Road countries totaled $11.34 billion, up 5.5%, accounting for about 60% of total exports. This shift highlights the growing importance of emerging markets, with Vietnam serving as a processing hub, while slower U.S. growth reflects trade policy and cost pressures.
Raw Material Costs Fluctuate, Trading Logic Shifts
In June 2026, international oil prices fell sharply as geopolitical tensions eased, with improved navigation in the Strait of Hormuz and plans by Iraq and other producers to accelerate output. Polyester prices weakened, nylon filaments traded soft, polypropylene prices began a downtrend, and viscose staple fiber oscillated upward amid cost support and demand pressure. The trading logic for chemical fibers is shifting from geopolitics to supply-demand fundamentals. For technical textiles producers, this means lower input cost volatility but also potential margin compression for polyester-intensive segments like nonwovens.