In the first five months of 2026, China's technical textiles industry delivered a 'steady with progress' performance. Output of nonwovens by above-scale enterprises accelerated by 5.6 percentage points year-on-year to 9.5%; tire cord fabric output grew 3.8%, also up 3.4 percentage points from the same period last year. This indicates that the production side is accelerating capacity release, especially in nonwovens, which is becoming the core engine driving overall growth.
Production and Efficiency: Divergence Intensifies, Nonwovens Stand Out
On the efficiency front, industry-wide revenue turned positive with a 1.7% year-on-year increase, but total profits still fell 3% year-on-year, with an operating profit margin of 3.6%. Sub-sector performance varied significantly: nonwovens saw revenue and profits grow 2.5% and 9.9% respectively, with profit margin improving to 2.7%, making it the only sub-sector with positive profit growth. Tarpaulins and canvas achieved 8.5% revenue growth but profits fell 5.7%, with profit margin down 0.6 percentage points, highlighting the contradiction between cost pressure and price transmission.
Ropes, cables, and cords saw profits plummet 9.7%, while textile belts and tire cord fabric revenue dropped 4.1%. These traditional categories face dual pressures from weak demand and intensified competition. Notably, 'other technical textiles' (construction, protective textiles) saw revenue barely increase 0.2% but boasted the industry's highest profit margin of 5%, indicating high value-added products still have strong pricing power.
Exports: Nonwovens and Absorbent Textiles Lead Growth
On the export side, from January to May 2026, total industry exports reached $18.81 billion, up 5.3% year-on-year, accelerating from the previous year. Nonwoven fabric exports hit $1.93 billion, up 10.7%, with export volume reaching 770,000 tons, up 13.4%, showing strong volume and price growth. Absorbent textiles (diapers, sanitary napkins) exported $1.76 billion, up 10.7%; wet wipes reached $490 million, surging 14.7%, reflecting continued growth in global hygiene care demand.
As the largest export category, coated industrial fabrics saw exports of $2.19 billion, growing only 1%, significantly slowing. Industrial glass fiber products exported $1.02 billion, up 12.2%, becoming a new growth point. By destination, the US, Vietnam, and Japan remained the top three markets, but exports to Belt and Road countries reached $11.34 billion, accounting for about 60%, with growth of 5.5%, indicating emerging markets are becoming important export supports.
Raw Materials and Costs: Geopolitical Premium Fades, Supply-Demand Logic Returns
In June, international oil prices fell sharply as US-Israel-Iran tensions eased, Hormuz Strait navigation improved, and Iraq and other oil producers planned accelerated production. This led to weak declines in polyester staple fiber and nylon filament prices, with polypropylene prices starting a downward channel. The geopolitical premium is rapidly fading, and the trading logic for chemical fibers is shifting from 'sentiment-driven' back to 'supply-demand fundamentals'. For downstream technical textile enterprises, this means cost pressures may ease temporarily, but they must also guard against inventory devaluation risks from raw material price fluctuations.