Technical Textiles Show Resilience: Nonwovens Output Growth Hits Five-Year High, Export Structure Diversifies

The technical textiles industry is navigating a phase of 'volume growth with thin margins.' According to the National Bureau of Statistics, from January to May 2026, nonwovens output from above-scale enterprises surged 9.5% year-on-year, accelerating 5.6 percentage points from the same period in 2025 and marking the fastest growth in five years. However, the industry's operating profit margin stood at only 3.6%, down 0.2 percentage points year-on-year, indicating that output expansion has not fully translated into profitability.

Output vs. Profitability: Nonwovens Lead, Tire Cord Follows

Nonwovens proved to be the strongest growth driver. Revenue rose 2.5% year-on-year, while profits jumped 9.9%, with the operating margin improving 0.2 percentage points to 2.7%. This outperformance suggests robust demand and effective cost control. Tire cord output grew 3.8%, but the broader textile belt and tire cord sector saw revenue fall 4.1% and profits drop 2.4%, a classic case of 'more output, less profit.'

Tarpaulins and canvas also stood out, with revenue up 8.5% but profits down 5.7%. The operating margin of 4.2% declined 0.6 percentage points, signaling pressure from raw material costs or selling expenses. Other technical textiles (construction, protective) boasted the highest operating margin at 5%, but profits plunged 11.5%, indicating margin compression in high-value segments.

Export Structure: Nonwovens Volume-Value Surge, Coated Fabrics Slow

China Customs data shows total exports reached $18.81 billion, up 5.3%. Nonwovens exports hit $1.93 billion, up 10.7%, with volume reaching 770,000 tons, up 13.4%. The faster volume growth implies declining unit prices, a typical 'volume for value' strategy amid global low growth and sticky inflation.

Coated fabrics, the largest export category, grew only 1% to $2.19 billion. Absorbent products (diapers, sanitary pads) surged 10.7% to $1.76 billion, and wet wipes jumped 14.7% to $490 million, highlighting strong consumer demand. The U.S., Vietnam, and Japan remained top destinations, with exports of $2.21 billion, $1.48 billion, and $940 million, respectively. Exports to Belt and Road countries reached $11.34 billion, up 5.5%, accounting for about 60% of total exports, underscoring a strategic pivot toward emerging markets.

Raw Material Signals: Oil Price Drop Reshapes Cost Outlook

In June, international oil prices fell sharply as geopolitical tensions eased. Polyester and nylon prices weakened, polypropylene prices entered a downtrend, while viscose staple fiber fluctuated upward. This provides temporary cost relief for technical textile producers, but whether end demand can keep pace remains the key variable.

Practical Recommendations

For Procurement Managers - Nonwovens supply is ample with intensifying price competition. Increase price comparisons and lock in long-term contracts to hedge against short-term volatility. - Coated fabrics export growth is slowing, potentially freeing up domestic capacity. Watch for price corrections in the second half.

For Exporters - With 60% of exports going to Belt and Road countries, prioritize Southeast Asia, the Middle East, and Africa to consolidate channel advantages. - Nonwovens export volume outpaces value growth, raising anti-dumping risks. Upgrade product value to reduce reliance on pure price competition.