China's technical textiles industry is undergoing a cold-hot adjustment. According to the National Bureau of Statistics, from January to May 2026, the output of nonwovens by enterprises above designated size increased by 9.5% year-on-year, and cord fabric output grew by 3.8%, with growth rates accelerating by 5.6 and 3.4 percentage points respectively compared to the same period last year. However, the industry's operating profit margin was only 3.6%, down 0.2 percentage points year-on-year, indicating that production expansion has not effectively translated into proportional profit improvement. The industry faces dual pressures of cost transmission and changing demand structures.
Profit Divergence: Nonwovens Stand Alone
Nonwovens were the only sub-sector achieving growth in both revenue and profit. Revenue increased by 2.5% year-on-year, while total profit surged 9.9%, with the operating profit margin rising to 2.7%. This is linked to rigid demand in hygiene and filtration applications—exports of absorbent textiles (diapers, sanitary napkins) reached US$1.76 billion, up 10.7%, directly driving nonwoven orders.
In contrast, traditional segments faced profit pressure. Rope, cable and cordage saw profits fall 9.7%; tarpaulin and canvas profits dropped 5.7%; and other technical textiles (construction, protective) plunged 11.5%. These sectors are tied to infrastructure and industrial supporting demand, which is sensitive to domestic fixed-asset investment rhythms and overseas demand fluctuations. Notably, the textile belt and cord fabric sector saw revenue decline 4.1% but profit margins edged up 0.1 percentage points, suggesting firms may be shrinking scale to focus on higher-margin orders.
Export Resilience: Structural Shifts
China Customs data shows that from January to May, technical textile exports totaled US$18.81 billion, up 5.3% year-on-year, while imports reached US$2.28 billion, up 3.1%. The trade surplus expanded further.
By product, nonwoven exports reached 770,000 tons, up 13.4%, with export value of US$1.93 billion, up 10.7%, reflecting strong overseas demand for hygiene and filtration materials. Coated fabrics ranked first by value at US$2.19 billion, but growth slowed to 1%. Among wiping textiles, wet wipes surged 14.7% in export value, indicating a permanent shift in global hygiene habits.
Export destinations are also changing. The US remained the top market at US$2.21 billion, but growth was only 3.5%. Vietnam ranked second at US$1.48 billion, up 8.3%, highlighting strong demand for intermediate goods from Southeast Asia amid industrial relocation. Exports to Belt and Road countries totaled US$11.34 billion, up 5.5%, accounting for about 60% of total exports. This suggests that traditional reliance on Western markets is diminishing, with emerging markets becoming new growth engines.
Raw Material Costs: Geopolitical Premium Fades
In June 2026, international oil prices fell sharply as tensions between the US, Israel and Iran eased, and navigation through the Strait of Hormuz improved. Polyester and nylon filament prices weakened, while polypropylene prices began a downward trend. Viscose staple fiber saw limited price increases despite cost support.
For technical textile companies, lower raw material costs should ease profit pressure, but transmission is not smooth. Downstream clients tend to delay purchases during price downturns, slowing inventory turnover. Moreover, in demand-driven segments like nonwovens, falling raw material prices may trigger price wars, squeezing already thin margins. The industry's trading logic is shifting from geopolitical premiums to supply-demand fundamentals, meaning future price trends will depend more on actual order recovery.