Industrial Textiles Show Resilience Amid Profit Squeeze: Nonwovens and Belt and Road Markets Drive Export Growth

Nonwoven output surged nearly 10% year-on-year, with export growth exceeding double digits, yet the overall industrial textile sector continued to see profit contraction. Data from the first five months of 2026 reveals a rapidly diverging industry landscape: revenue of enterprises above designated size edged up 1.7%, but total profits fell 3%, with an operating profit margin of only 3.6%. This suggests that growth is more driven by cost pass-through than by genuine demand recovery, squeezing margins in segments with weak pricing power.

Production and Profitability: Nonwovens Cannot Carry the Whole Burden According to the National Bureau of Statistics, from January to May, nonwoven output rose 9.5% year-on-year, and tire cord fabric output grew 3.8%, accelerating by 5.6 and 3.4 percentage points respectively compared to the same period in 2025. While the production side expansion suggests robust orders, profits have not kept pace. The nonwoven sector saw a 9.9% profit increase, but its operating profit margin was only 2.7%, one of the lowest in the industry. In contrast, other industrial textiles (construction, protective fabrics) achieved the highest margin of 5%, yet their total profits fell 11.5%, displaying a paradox of high margin but low growth.

Rope, cable, and cordage segments saw revenue grow 1.8% but profits plummet 9.7%, with margins falling to 3%. Tarpaulin and canvas posted 8.5% revenue growth but a 5.7% profit decline. These figures indicate that raw material cost volatility and downstream price pressure are eroding profitability in multiple sub-sectors. Textile tape and tire cord fabric was the only segment with both revenue and profit declines, dropping 4.1% and 2.4% respectively, reflecting weak demand from automotive and industrial sectors.

Exports: Belt and Road Countries Account for 60%, Nonwovens and Hygiene Products Lead China Customs data shows that from January to May, total exports of industrial textiles reached $18.81 billion, up 5.3% year-on-year. Nonwoven fabric exports were $1.93 billion, up 10.7%, with export volume hitting 770,000 tons, up 13.4%, indicating continued overseas capacity gaps. Absorbent hygiene products (diapers, sanitary napkins) exported $1.76 billion, up 10.7%, and wet wipes reached $490 million, up 14.7%, reflecting rigid global demand for personal hygiene.

Coated industrial fabrics ranked first in export value at $2.19 billion, but growth slowed to just 1%. Industrial glass fiber products reached $1.02 billion, up 12.2%, benefiting from overseas demand in new energy and infrastructure. The top three destinations were the US ($2.21 billion), Vietnam ($1.48 billion), and Japan ($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, a share that has further increased compared to 2025, indicating a deepening reliance on emerging markets.

Cost Side: Oil Price Collapse Reshapes Chemical Fiber Pricing Logic In June 2026, international oil prices dropped sharply as geopolitical premiums quickly faded. Polyester, nylon filament, and polypropylene prices all trended downward, while viscose staple fiber oscillated between cost support and weak demand. This means the cost-driven price rally seen in the first half of the year is unraveling. For buyers, chemical fiber raw material prices may decline further in the second half, but the extent of end-product price reductions depends on inventory levels and order structures. For factories, whether falling raw material costs translate into profit improvement hinges on their ability to lock in long-term orders before customers demand price cuts.

Practical Recommendations ### For Buyers - Focus on nonwoven fabrics and hygiene products, which have large export volumes and intense price competition; a price correction window may open in Q3. - Coated industrial fabrics and tire cord fabric face weak demand, giving buyers more bargaining power on payment terms or discounts. - Given stable export growth to Belt and Road countries, consider establishing local warehousing or distribution channels to reduce logistics costs.

For Foreign Trade Companies - Nonwovens and glass fiber products show high export growth but thin margins; enhance product value (e.g., antibacterial, flame-retardant functions) to strengthen pricing power. - Be cautious of profit declines, especially in rope/cable and tarpaulin segments; optimize product mix by reducing low-margin orders. - Leverage the window of falling international oil prices to negotiate short-term floating price contracts with chemical fiber suppliers to lock in cost advantages.