The resilience of technical textiles is being tested by the market. In the first five months of 2026, revenue of above-scale enterprises turned from decline to growth, but profit recovery was uneven, with nonwovens emerging as the growth engine while traditional rope and tarpaulin categories continued to shrink profits.
Production: Nonwovens Accelerate Expansion, Tire Cord Yarn Recovers
According to the National Bureau of Statistics, nonwoven fabric output increased 9.5% year-on-year from January to May, accelerating by 5.6 percentage points compared to the same period last year. Tire cord yarn output rose 3.8%, up 3.4 percentage points. The accelerated output of nonwovens, a core category, suggests continued demand recovery in downstream hygiene, filtration, and packaging sectors.
In terms of profitability, the nonwovens sector saw revenue up 2.5% and profits up 9.9%, with an operating profit margin of 2.7%, up 0.2 percentage points. Profit growth significantly outpaced revenue, indicating effective cost control or product structure upgrades. In contrast, the rope, cord, and cable sector saw revenue up 1.8% but profits down 9.7%, with a margin of only 3%, down 0.4 percentage points, highlighting cost pressures and price competition.
The textile tape and tire cord yarn sector saw revenue down 4.1% and profits down 2.4%, but margins improved by 0.1 percentage points to 3.7%, suggesting companies may be shedding low-margin business to protect profits. The tarpaulin and canvas sector saw revenue up 8.5% but profits down 5.7%, with margins at 4.2%, down 0.6 percentage points—a classic case of revenue growth without profit growth, often signaling rising raw material costs or weak pricing power.
Other technical textiles (construction, protective) saw revenue up only 0.2% and profits down 11.5%, but their 5% operating profit margin was the highest in the industry. High margins reflect technological barriers and customized services, but weak demand is eroding this profit pool.
Exports: Steady Growth, Structural Shift, ASEAN Market Penetration
Customs data show exports of technical textiles reached US$18.81 billion from January to May, up 5.3% year-on-year; imports were US$2.28 billion, up 3.1%. Export growth outpaced imports, widening the trade surplus.
By product, coated industrial fabrics topped exports at US$2.19 billion, but growth was only 1%, nearly stagnant. Nonwovens ranked second at US$1.93 billion, up 10.7%, with export volume reaching 770,000 tons, up 13.4%. Volume growth with stable prices indicates rising overseas acceptance of Chinese nonwovens. Absorbent articles (diapers, sanitary napkins) exported US$1.76 billion, up 10.7%; wet wipes exported US$490 million, up 14.7%, one of the fastest-growing subcategories, reflecting global hygiene consumption upgrades.
Industrial glass fiber products exported US$1.02 billion, up 12.2%, driven by demand from new energy and construction reinforcement.
By destination, the US, Vietnam, and Japan were the top three markets, with exports of US$2.21 billion, US$1.48 billion, and US$940 million, growing 3.5%, 8.3%, and 0.9% respectively. Exports to Belt and Road countries reached US$11.34 billion, up 5.5%, accounting for about 60% of total exports. Vietnam's leading growth rate suggests that Chinese technical textiles are accelerating integration into regional supply chains through Southeast Asian infrastructure demand.
Costs: Geopolitical Premium Fades, Trading Logic Returns to Fundamentals
International oil prices fell sharply in June, as tensions in the Middle East eased and the Strait of Hormuz improved, with Iraq and other producers planning to increase output. Polyester, nylon filament, and polypropylene prices weakened, while viscose staple fiber fluctuated upward between cost support and pressure.
For technical textile companies, lower raw material costs should relieve profit pressure, but the actual benefit depends on whether final product prices can be adjusted downward. The geopolitical premium that dominated the past two years is fading, and the trading logic of the chemical fiber industry is slowly shifting back to supply and demand fundamentals. This means second-half profit trends will depend more on real downstream demand than cost push.