China's technical textile industry posted a resilient yet diverging performance in the first five months of 2026. Data from the National Bureau of Statistics and the General Administration of Customs show that value-added output of enterprises above designated size maintained medium-speed growth, but profit recovery remained uneven across sub-sectors.
Production Accelerates, Nonwovens Lead
Production of major products accelerated significantly. Nonwovens output grew 9.5% year-on-year, 5.6 percentage points faster than the same period in 2025. Tire cord fabric output rose 3.8%, accelerating by 3.4 percentage points. This capacity release reflects stable downstream demand in hygiene, filtration, and packaging, as well as proactive inventory replenishment by manufacturers.
Operating revenue edged up 1.7%, turning from decline to growth. Total profit narrowed its decline to 3%, with an operating profit margin of 3.6%, down 0.2 percentage points. Overall profitability remains squeezed, but the pace of decline has slowed markedly.
Sub-sector Profit Divergence: Nonwovens Shine, Ropes and Tarpaulins Struggle
Nonwovens stood out: revenue grew 2.5%, profit surged 9.9%, and the profit margin improved to 2.7%. This was driven by strong export growth (+10.7%) and expanding domestic demand for hygiene products.
In contrast, ropes, cords, and cables saw profit drop 9.7%, with a margin of 3.0%. Tarpaulins and sailcloth revenue increased 8.5%, but profit fell 5.7%, indicating cost pressures outpaced revenue gains. Textile tapes and tire cord fabric were the only sub-sector with both revenue and profit declines (-4.1% and -2.4%), though the margin edged up to 3.7%, suggesting product mix optimization.
Other technical textiles (construction, protective) posted the highest margin at 5.0%, but profit fell 11.5% on flat revenue, highlighting demand weakness and cost pressure in high-end segments.
Exports Grow Steadily, US, Vietnam, Japan Top Destinations
Total exports reached $18.81 billion, up 5.3%; imports were $2.28 billion, up 3.1%. Coated fabrics led export categories at $2.19 billion (+1%), followed by nonwovens at $1.93 billion (+10.7%), with volume reaching 770,000 tons (+13.4%). Absorbent hygiene products (diapers, sanitary napkins) exported $1.76 billion (+10.7%), and wet wipes $490 million (+14.7%), the fastest-growing category. Industrial glass fiber products exported $1.02 billion (+12.2%), benefiting from wind power and construction demand.
Top three export destinations were the US ($2.21 billion, +3.5%), Vietnam ($1.48 billion, +8.3%), and Japan ($940 million, +0.9%). Exports to Belt and Road countries totaled $11.34 billion, accounting for 60% of total exports, up 5.5%, demonstrating effective market diversification.
Raw Materials: Geopolitical Premium Fades, Fundamentals Return
In June, international oil prices fell sharply as Middle East tensions eased and the Strait of Hormuz navigation improved. Polyester and nylon prices weakened, polypropylene prices declined, while viscose staple fiber fluctuated upward amid cost support and pressure.
The geopolitical premium that supported chemical fiber prices in the first half is rapidly fading. The trading logic is shifting from 'betting on expectations' to 'watching supply and demand.' For nonwovens and coated fabric producers, raw material cost pressure may ease temporarily, but whether end demand can sustain output growth remains the biggest variable for the second half.