The technical textiles industry delivered a mixed performance in the first five months of 2026: revenue from above-scale enterprises turned positive, up 1.7% year-on-year, but total profit still fell 3%, with an average operating profit margin of only 3.6%. What does this mean? Profit growth lags revenue growth, and cost pressures remain unresolved.
Output vs. Profit: Nonwovens Lead, Sub-sector Divergence Widens
On the output side, nonwovens and tire cord fabrics were the highlights. According to the National Bureau of Statistics, nonwovens output by above-scale enterprises grew 9.5% year-on-year, accelerating 5.6 percentage points from the same period in 2025; tire cord fabric output rose 3.8%, with growth accelerating 3.4 points. This acceleration reflects recovering downstream demand, especially in medical, hygiene, and filtration sectors.
However, output growth did not translate evenly into profit. Nonwovens saw a 9.9% profit increase, while ropes, cables, and cords suffered a 9.7% decline; tarpaulins and canvas dropped 5.7%. More notably, other technical textiles (including construction and protective textiles) saw profit plunge 11.5%, despite having the highest operating margin of 5%. This suggests that high-margin segments face intense price competition and cost erosion.
Exports: Steady Growth, Shifting Composition and Destinations
Customs data shows exports of technical textiles reached $18.81 billion from January to May, up 5.3% year-on-year, while imports grew 3.1% to $2.28 billion. Export growth outpaced imports, widening the trade surplus.
By product, nonwovens exports hit $1.93 billion (up 10.7%), with volume reaching 770,000 tons (up 13.4%), indicating strong overseas demand. Absorbent textiles (diapers, sanitary pads) exported $1.76 billion (up 10.7%), and wet wipes $490 million (up 14.7%), emerging as new growth drivers. In contrast, coated fabrics grew only 1%, and tents declined 1.2%, signaling slower traditional segments.
By destination, the U.S., Vietnam, and Japan remained top three, with exports of $2.21 billion, $1.48 billion, and $940 million, growing 3.5%, 8.3%, and 0.9% respectively. Notably, exports to Belt and Road countries reached $11.34 billion (up 5.5%), accounting for about 60% of total exports. This indicates a shift in geographic dependency from traditional Western markets to emerging economies, enhancing supply chain resilience.
Raw Materials: Geopolitical Premium Fades, Fundamentals Resurface
In June, international oil prices tumbled as tensions in the Middle East eased and the Strait of Hormuz navigability improved. Iraq and other producers plan to ramp up output, dragging down polyester, nylon filament, and polypropylene prices. The geopolitical premium is fading, and the trading logic for chemical fibers is slowly reverting to supply-demand fundamentals.
For technical textile companies, this is both a blessing and a challenge. Lower raw material costs help ease profit pressure, but if end demand doesn't pick up, price wars may further erode margins. Nonwovens producers benefit from both lower costs and rising demand, while rope and tarpaulin makers must guard against inventory buildup due to weak demand.