The technical textiles industry is undergoing a structural divergence. Data from the first five months of 2026 shows overall revenue turning positive, but profit recovery is uneven—nonwovens have emerged as the biggest winner, while traditional categories like ropes, cables, tarpaulins, and canvas are still digesting cost and demand pressures.
Production: Nonwovens Lead the Charge
According to the National Bureau of Statistics, output of nonwovens by enterprises above designated size grew 9.5% year-on-year from January to May, accelerating by 5.6 percentage points from the same period in 2025. Tire cord fabric output increased 3.8%, with a 3.4 percentage point acceleration. The faster growth in nonwovens reflects sustained demand from downstream hygiene absorbent materials, wipes, and filtration products.
On profitability, the nonwovens sector saw revenue up 2.5% and profit up 9.9%, with an operating profit margin of 2.7%. In contrast, the rope, cord, and cable sector saw revenue up only 1.8% while profit fell 9.7%; the tarpaulin and canvas sector grew revenue by 8.5% but profit dropped 5.7%. This pattern of "revenue growth without profit growth" indicates that raw material cost pass-through is not smooth, and companies' pricing power needs strengthening.
The tire cord fabric sector saw revenue and profit decline by 4.1% and 2.4% respectively, yet maintained a 3.7% operating margin, suggesting relatively healthy profitability despite contraction. Other technical textiles (construction, protective textiles) achieved the highest operating margin of 5% but saw profit drop 11.5%, highlighting earnings fragility amidst demand volatility.
Exports: Nonwovens and Hygiene Products as Twin Engines
Customs data shows technical textile exports reached $18.81 billion from January to May, up 5.3%. Nonwoven exports were $1.93 billion, up 10.7%, with volume reaching 770,000 tons, up 13.4%. The decline in average export price reflects global supply glut and intensifying competition.
Absorbent textile products (diapers, sanitary pads) exported $1.76 billion, up 10.7%; wet wipes exported $490 million, up 14.7%. The high growth in these two categories confirms continued expansion in global personal care and home cleaning consumption, with China solidifying its role as the major production base.
Coated technical fabrics remained the largest export category at $2.19 billion, up only 1%. Canvas exports fell 1.4%, and tarpaulins and tents fell 1.2%, indicating saturation in outdoor and industrial covering products.
The 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 reached $11.34 billion, up 5.5%, accounting for about 60% of total. This structure means: traditional Western markets still provide the base, while Southeast Asia and emerging markets are becoming incremental growth engines.
Raw Materials: Oil Price Crash Opens Cost Advantage Window
In June 2026, international oil prices plunged sharply as Middle East geopolitical premiums faded. Polyester, nylon filament, and polypropylene prices weakened or entered a downtrend, while viscose staple fiber fluctuated upward amid cost support and demand pressure.
For technical textile companies, the oil price drop will directly reduce costs of synthetic fiber raw materials like polyester and polypropylene. However, note there is a 1-2 month lag in price transmission—the cost reduction benefit from Q3 raw materials is likely to appear in Q4 financial statements. Meanwhile, the trading logic of the chemical fiber industry is shifting from "geopolitical premium" to "supply-demand fundamentals", meaning raw material price fluctuations will more closely reflect real demand rather than short-term events.