The industrial textiles sector in China has entered 2026 with a clear picture of 'stable aggregates, sharp divergences.' National Bureau of Statistics data shows that from January to May, nonwoven output among above-scale enterprises rose 9.5% year-on-year, accelerating by 5.6 percentage points from the same period in 2025; cord fabric output grew 3.8%, up 3.4 percentage points. However, this production acceleration did not fully translate into profit improvement—the industry's overall operating profit margin stood at only 3.6%, down 0.2 percentage points year-on-year. This contrast signals the industry's transition from scale expansion to efficiency optimization.
Nonwovens: Dual Growth in Output and Profit
Among sub-sectors, nonwovens performed best. From January to May, revenue in the nonwoven sector increased 2.5% year-on-year, while total profit surged 9.9%, pushing the operating profit margin to 2.7%, up 0.2 percentage points. Exports of nonwovens reached USD 1.93 billion, up 10.7%, with export volume hitting 770,000 tons, a 13.4% increase. Higher capacity utilization combined with export growth made nonwovens one of the few segments achieving both volume and profit gains.
In contrast, the tarpaulin and canvas sector saw revenue rise 8.5%, but total profit fell 5.7%, and the operating profit margin dropped to 4.2%, down 0.6 percentage points. This divergence highlights the dual pressure of raw material cost volatility and weak pricing power. Other industrial textiles (e.g., construction and protective textiles) had the highest operating profit margin at 5%, but total profit declined 11.5%, indicating that scale effects have yet to translate into profitability.
Export Structure: Nonwovens and Absorbents as New Engines
Customs data shows that from January to May, industrial textile exports totaled USD 18.81 billion, up 5.3% year-on-year. Coated industrial fabrics led with USD 2.19 billion in exports, but growth was only 1%. Nonwovens ranked second at USD 1.93 billion, growing 10.7%, becoming the main driver of export growth. Absorbent textiles (diapers, sanitary pads) exported USD 1.76 billion, up 10.7%; wet wipes exported USD 490 million, up 14.7%.
By destination, the top three markets were the United States (USD 2.21 billion, +3.5%), Vietnam (USD 1.48 billion, +8.3%), and Japan (USD 940 million, +0.9%). Notably, exports to Belt and Road Initiative countries reached USD 11.34 billion, up 5.5%, accounting for about 60% of total exports. This suggests that emerging markets are becoming crucial for absorbing capacity and hedging against demand fluctuations in traditional markets.
Cost Side: Geopolitical Premiums Fade, Chemical Fibers Enter Downward Channel
In June 2026, international oil prices fell sharply as tensions between the US, Israel, and Iran eased, navigation through the Strait of Hormuz improved, and oil producers like Iraq planned to accelerate output increases. This directly impacted chemical fiber raw materials: polyester and polyester filament prices weakened, nylon filament ran weak, and polypropylene prices entered a downward channel. The geopolitical premium is gradually receding, and the trading logic of the chemical fiber industry is shifting from risk pricing to supply-demand fundamentals.
For industrial textile enterprises, lower raw material costs should be a positive, but profit data does not yet reflect this. The reason is that some downstream orders are locked in at long-term contract prices, so the cost reduction benefits have not yet materialized; meanwhile, end customers are aggressively pushing for price cuts, limiting negotiation room. It is expected that from Q3 onward, as lower-cost raw materials enter production, profit margins for standardized products like nonwovens and medical dressings may improve first.