In the first five months of 2026, China's technical textiles industry delivered a report card of "stable aggregate, divergent segments." Value-added output maintained medium growth among above-scale enterprises, but profit performance varied sharply across sub-sectors, with nonwovens being the only category to achieve double-digit profit growth. Meanwhile, exports continued to grow amid a complex international environment, deepening reliance on Belt and Road countries.
Production and Profitability: Nonwovens Stand Out
According to the National Bureau of Statistics, nonwoven fabric output by above-scale enterprises surged 9.5% year-on-year, accelerating 5.6 percentage points from the same period last year. Tire cord fabric output also grew 3.8%. Nonwovens led not only in output but also in profitability: operating revenue rose 2.5%, while profits jumped 9.9%, lifting the operating profit margin to 2.7%. In contrast, the tarpaulin and canvas segment saw revenue up 8.5% but profits down 5.7%; rope and cable netted a 1.8% revenue increase with a 9.7% profit decline. This "revenue up, profit down" phenomenon reflects dual pressures from raw material cost volatility and weak pricing power. The industry-wide operating profit margin stood at 3.6%, down 0.2 percentage points, though "other technical textiles" (construction, protective textiles) achieved the highest margin of 5%, underscoring the pricing advantage conferred by technological barriers.
Export Landscape: Nonwovens Surge in Volume and Value, Belt and Road as Growth Engine
Customs data show total exports reached $18.81 billion, up 5.3%. Nonwovens ranked second with $1.93 billion, up 10.7%, and export volume hit 770,000 tons (+13.4%). Coated fabrics led at $2.19 billion but grew only 1%. Absorbent hygiene products (diapers, sanitary napkins) exported $1.76 billion (+10.7%); wipes and wet wipes totaled $1.2 billion, growing 4.3% and 14.7% respectively, reflecting sustained global demand for hygiene products. Industrial glass fiber products reached $1.02 billion (+12.2%). The top three destinations were the U.S. ($2.21 billion), Vietnam ($1.48 billion), and Japan ($0.94 billion). Exports to Belt and Road countries hit $11.34 billion (+5.5%), accounting for 60% of total exports, making this market's fluctuations decisive for the industry.
Raw Materials and Trends: Geopolitical Premium Fades, Fundamentals Return
In June 2026, international oil prices plunged amid eased Middle East tensions, improved navigation in the Strait of Hormuz, and plans by Iraq and others to boost output. Polyester prices weakened, nylon and polypropylene yarns softened, and only viscose staple fiber rose slightly due to cost support. The market is shifting from geopolitical premium to supply-demand fundamentals, potentially releasing previously hoarded inventories and disrupting downstream procurement. For technical textile firms, lower raw material costs are a short-term benefit, but if end demand fails to recover, margin compression from poor price transmission will persist. Nonwovens' profit growth is tied to rigid demand in hygiene and medical sectors, while industrial products like rope and tarpaulin are more sensitive to macroeconomic cycles.