Technical Textiles Show Resilience: Profits Under Pressure but Output and Exports Rise, Structural Divergence Intensifies

In the first five months of 2026, China's technical textile industry delivered a mixed performance: output and exports both grew, but profit margins remained under pressure. According to the National Bureau of Statistics, nonwoven fabric output surged 9.5% year-on-year, accelerating by 5.6 percentage points from the same period in 2025. Total exports reached $18.81 billion, up 5.3% year-on-year. However, total industry profits still fell 3% year-on-year, with an operating profit margin of only 3.6%, highlighting persistent cost-price compression. Behind these contrasting figures lies an accelerating structural divergence within the industry. Not all sub-sectors share the growth equally; the gap in revenue, profit, and export performance is widening, demanding more nuanced strategies from buyers and exporters alike. ## Accelerated Output and Uneven Profit Recovery: Nonwovens Lead, Cord Fabrics Recover On the production side, output of major products accelerated across the board. Nonwoven fabric output grew 9.5% year-on-year, the fastest pace in recent years, serving as the primary growth engine. Cord fabric output rose 3.8%, also accelerating by 3.4 percentage points, indicating a moderate recovery in downstream demand from automotive tires and related sectors. In terms of profitability, nonwovens outperformed all other categories. Revenue for nonwoven enterprises above designated size increased 2.5%, while total profits surged 9.9%, lifting the operating profit margin to 2.7%. This resilience stems from rigid demand in end-use markets such as hygiene materials and filtration products. In contrast, the textile tape and cord fabric sector saw revenue decline 4.1% and profits fall 2.4%, reflecting shrinking demand in traditional industrial textile applications. Notably, the tarpaulin and canvas sector posted an 8.5% revenue increase but a 5.7% profit decline, suggesting a classic 'revenue growth without profit growth' scenario—order volumes are rising, but price competition or cost pass-through inefficiencies are eroding margins. ## Export Structure Shift: Nonwovens and Absorbent Textiles Emerge as New Growth Poles According to China Customs data, technical textile exports totaled $18.81 billion from January to May, up 5.3% year-on-year, while imports reached $2.28 billion, up 3.1%, widening the trade surplus. The growth momentum is shifting from traditional coated fabrics toward higher-value-added categories. Nonwoven fabric exports hit $1.93 billion, up 10.7%, with export volume reaching 770,000 tons, up 13.4%—a clear volume-and-price uptrend. Absorbent textiles (diapers, sanitary napkins, etc.) exported $1.76 billion, up 10.7%; wet wipes reached $490 million, up 14.7%, the fastest-growing sub-category. These gains reflect sustained global demand for personal care and disposable hygiene products, offering a clear export direction for domestic firms. Industrial coated fabrics remained the largest export category at $2.19 billion, but growth slowed to just 1%. Tarpaulins and tents exports fell 1.2% to $1.85 billion, signaling cooling outdoor demand. Industrial glass fiber products exported $1.02 billion, up 12.2%, buoyed by demand from new energy and infrastructure sectors. In terms of markets, the U.S. ($2.21 billion, +3.5%), Vietnam ($1.48 billion, +8.3%), and Japan ($940 million, +0.9%) remained the top three destinations. Exports to Belt and Road countries reached $11.34 billion, up 5.5%, accounting for about 60% of total industry exports, underscoring the stabilizing role of emerging markets. ## Raw Material Cost Logic Reshaped: Oil Price Drop and Geopolitical Premium Fade In June 2026, international oil prices fell sharply, driven by a significant de-escalation of tensions in the Middle East and production increase plans from major oil producers. This shift is reshaping the cost structure of chemical fiber raw materials. Polyester prices weakened, nylon filament remained soft, polypropylene prices entered a downward channel, and only viscose staple fiber rose on cost support. For technical textile companies, this means: first, the geopolitical premium that inflated raw material costs over the past two years is fading, potentially lowering the production cost base; second, in a price-declining cycle, downstream customers may delay purchases or demand lower prices, requiring more agile inventory and order management. ## Practical Recommendations ### For Buyers - Monitor capacity release schedules for nonwovens and absorbent textiles. Lock in long-term orders during the current low raw material price window to avoid supply tightness in the peak season. - For tarpaulin and canvas products, prioritize tier-one suppliers with strong cost control capabilities to mitigate the risk of 'low bid, compromised delivery'. - Take advantage of the current weak polyester price environment for batch procurement of conventional coated fabrics, but avoid building excessive inventory. ### For Exporters - Intensify efforts in Belt and Road markets, especially Vietnam and Indonesia, where manufacturing relocation is driving sustained demand for nonwovens and industrial textiles. - Absorbent textiles and wet wipes are the fastest-growing export categories. Focus resources on developing emerging markets in the Middle East and Africa, leveraging cost competitiveness to gain market share. - Closely monitor international oil price trends and exchange rate fluctuations. During the raw material price downcycle, use a combination of forward forex hedging and raw material hedging to lock in export margins.