Nonwovens are emerging as the strongest growth engine in China's technical textiles sector. In the first five months of 2026, output of nonwoven fabrics by above-scale enterprises surged 9.5% year-on-year, with the growth rate accelerating by 5.6 percentage points compared to the same period in 2025. Meanwhile, total profits in this subsector jumped 9.9%, significantly outperforming the industry average. This data signals a structural divergence within the technical textiles industry—some segments are accelerating independently amid a broader economic slowdown.
Production and Efficiency: Nonwovens Lead, Profit Divergence Worsens
According to publicly available data from the National Bureau of Statistics, from January to May, operating revenue of above-scale enterprises in the technical textiles industry edged up 1.7% year-on-year, while total profits narrowed their decline to 3%. The operating profit margin stood at 3.6%, down 0.2 percentage points year-on-year. The overall picture is one of 'revenue stabilizing, profits under pressure.'
However, sub-sector performance varies dramatically. The nonwovens industry saw a 2.5% revenue increase and a 9.9% profit surge, with an operating profit margin of 2.7%, up 0.2 percentage points. Profit growth far outpacing revenue suggests improved cost control or higher product value-add. In contrast, the tarpaulin and canvas sector recorded 8.5% revenue growth but a 5.7% profit decline, with the operating margin falling 0.6 percentage points to 4.2%—a classic case of revenue growth without profit improvement, likely due to rising raw material costs or competitive pressure.
- Ropes, cables, and cords: revenue +1.8%, profit -9.7%, margin 3.0%
- Textile belts and tire cord fabric: revenue -4.1%, profit -2.4%, margin 3.7%
- Other technical textiles (construction, protective): revenue +0.2%, profit -11.5%, but margin 5.0%—the highest in the industry
Notably, tire cord fabric saw both revenue and profit declines, despite a 3.8% output increase. This suggests falling unit prices, possibly due to weak downstream demand from tire manufacturers or overcapacity.
Export Structure: Belt and Road Accounts for 60%, Nonwovens See Volume and Value Rise
China Customs data shows that from January to May, technical textiles exports reached $18.81 billion, up 5.3% year-on-year, while imports totaled $2.28 billion, up 3.1%. Export growth outpaced imports, widening the trade surplus.
Nonwoven fabrics ranked second among export categories with $1.93 billion, up 10.7%, and export volume hit 770,000 tons, up 13.4%. Volume growth outpacing value indicates slightly lower unit prices but rapid market share expansion. Coated industrial fabrics led exports at $2.19 billion, but growth was only 1%, suggesting market saturation.
- Tarpaulins and tents: $1.85 billion, -1.2%
- Absorbent textiles (diapers, sanitary napkins): $1.76 billion, +10.7%
- Wipes (excluding wet wipes): $710 million, +4.3%; wet wipes: $490 million, +14.7%
- Industrial glass fiber products: $1.02 billion, +12.2%
By destination, the top three markets 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, up 5.5%, accounting for about 60% of total industry exports. This shift means China's technical textiles market center has moved from traditional Western markets to emerging economies, partially diversifying geopolitical risk but also facing competition from local production capacity.
Cost Transmission: Oil Price Drop Reshapes Chemical Fiber Pricing
In June 2026, international oil prices fell sharply as tensions between the US, Israel, and Iran eased, navigation through the Strait of Hormuz improved, and oil producers like Iraq accelerated output. Geopolitical premiums quickly faded. As a result, polyester filament prices weakened, nylon filament performed weakly, and polypropylene prices entered a downward channel. Only viscose staple fiber saw volatile price increases due to cost support and pressure.
For technical textiles companies, falling oil prices mean lower chemical fiber raw material costs. However, transmission is not immediate—polyester procurement cycles are typically 1-2 months, so production costs in early Q3 will benefit from June's oil price decline. This is positive for nonwovens and other polyester-intensive subsectors, potentially expanding profit margins.
Conversely, sectors like tire cord fabric and ropes, which rely on nylon and polypropylene, may not fully convert cost savings into profits due to weak downstream demand and limited pricing power.