The technical textiles industry delivered a 'steady with changes' performance in early 2026. According to the National Bureau of Statistics, output of nonwovens by enterprises above designated size grew 9.5% year-on-year in the first five months, accelerating 5.6 percentage points from the same period last year. Cord fabric output also rose 3.8%. These figures suggest that downstream demand from infrastructure, medical, and automotive sectors remains resilient, without significant contraction amid macro fluctuations.
Profit Divergence: Nonwovens Lead
Profit performance showed stark divergence. The nonwovens sub-sector saw total profits surge 9.9% year-on-year, with an operating profit margin of 2.7%, up 0.2 percentage points. In contrast, the rope, cable, and cordage sector saw profits fall 9.7%, tarpaulins and canvas dropped 5.7%, and the 'other technical textiles' category (including medical dressings) plunged 11.5%. This indicates that the overall industry's profit decline narrowing to 3% is largely driven by nonwovens. Buyers should note that capacity expansion in nonwovens may intensify price competition, while high-margin medical protective products face demand contraction.
Export Resilience: Volume Up, Price Under Pressure
Customs data show total exports of $18.81 billion in the first five months, up 5.3% year-on-year. Nonwoven fabric exports reached 770,000 tons, surging 13.4%, but value grew only 10.7%, signaling unit price pressure. Coated fabrics remained the largest export category at $2.19 billion, with growth of just 1%, reflecting stagnation in traditional products. Notably, absorbent textiles (diapers, sanitary napkins) hit $1.76 billion, up 10.7%, while wet wipes grew 14.7%, indicating personal care technical textiles as a new growth pole.
By destination, the US, Vietnam, and Japan ranked top three with $2.21 billion, $1.48 billion, and $940 million, growing 3.5%, 8.3%, and 0.9% respectively. Exports to 'Belt and Road' countries reached $11.34 billion, accounting for about 60% of total, growing 5.5%, slightly above the overall rate. This means traditional Western markets offer limited room, while emerging markets are the main battlefield for export growth. Foreign trade firms should build channels along the 'Belt and Road' while hedging geopolitical risks in single markets.
Cost Side: Geopolitical Premium Fades, Chemical Fiber Prices Under Pressure
In June, international oil prices plunged as tensions eased between the US, Israel, and Iran, and navigation through the Strait of Hormuz improved. Polyester, nylon filament, and polypropylene prices all weakened, while viscose staple fiber rose amid cost support but remained generally weak. The trading logic of the chemical fiber industry is shifting from 'geopolitical panic' back to supply-demand fundamentals. For technical textile companies, raw material cost pressures have eased temporarily, but a price rebound risk remains—accelerated production by Iraq and other oil producers could lead to new oversupply.