The industrial textiles sector in China delivered a mixed performance in early 2026: output growth accelerated, yet profit recovery remained uneven. Total operating revenue of above-scale enterprises turned positive, rising 1.7% year-on-year, while total profits narrowed their decline to 3%, with an operating margin of 3.6%. These figures suggest the industry is emerging from a trough, but divergences among sub-sectors are widening.
Output Accelerates, Profits Diverge
According to the National Bureau of Statistics, from January to May 2026, output of nonwovens by above-scale enterprises grew 9.5% year-on-year, and cord fabric output rose 3.8%, with growth rates accelerating by 5.6 and 3.4 percentage points respectively compared to the same period in 2025. The production recovery is clear, especially for nonwovens, a bellwether segment, whose double-digit growth signals recovering demand in hygiene, filtration, and packaging end-uses.
Profit performance, however, varied sharply. The nonwovens sector saw profits jump 9.9%, with operating margins improving to 2.7%, making it the standout segment. In contrast, the rope, cord, and cable sector saw profits fall 9.7%; tarpaulins and sailcloth profits dropped 5.7%; and other industrial textiles (construction, protective) suffered an 11.5% profit decline. This divergence reflects that segments with higher technical barriers and more rigid demand (like nonwovens) are more resilient, while those dependent on infrastructure and outdoor economies face demand volatility.
Export Growth Steady, Structural Highlights Concentrated
China Customs data shows that from January to May 2026, industrial textile exports reached $18.81 billion, up 5.3% year-on-year, while imports stood at $2.28 billion, up 3.1%. The export growth rate is modest but robust against a backdrop of global trade contraction.
By product, the fastest-growing categories were absorbent textiles and wet wipes. Absorbent textiles (diapers, sanitary pads) exported $1.76 billion, up 10.7%; wet wipes reached $490 million, up 14.7%. Nonwoven exports by volume hit 770,000 tons, up 13.4%, with export value of $1.93 billion, up 10.7%, indicating both volume and price gains. Industrial glass fiber products exported $1.02 billion, up 12.2%, reflecting sustained demand from infrastructure and new energy sectors.
Conversely, traditional categories like tarpaulins and tents saw exports fall 1.2%, and sailcloth dropped 1.4%, indicating weaker outdoor consumption and traditional building cover demand. Among destinations, the US ($2.21 billion), Vietnam ($1.48 billion), and Japan ($940 million) remained the top three, but growth rates diverged: Vietnam grew 8.3%, the US only 3.5%, and Japan was nearly flat. Exports to Belt and Road countries reached $11.34 billion, accounting for about 60% of total exports, growing 5.5%, serving as a stabilizer.
Raw Material Cost Support Weakens, Trading Logic Shifts
In June 2026, international oil prices fell sharply as geopolitical premiums rapidly dissipated. Iraq and other oil producers plan to accelerate output increases, while navigation through the Strait of Hormuz continues to improve. This drove polyester, nylon filament, and polypropylene fiber prices downward. Viscose staple fiber prices fluctuated upward due to coexisting cost support and demand pressure.
What does this mean for the industrial textiles industry? Over the past two years, high raw material costs were a major profit squeeze. Now, with oil prices falling, cost support for chemical fibers weakens, and the industry's trading logic is shifting from geopolitical premiums to supply-demand fundamentals. For segments with high capacity utilization like nonwovens, lower costs will directly boost profit recovery. But for weak-demand segments like tarpaulins, raw material price declines may trigger downstream price pressure, limiting profit improvement.