The technical textiles industry delivered a mixed performance in the first five months of 2026, with accelerating output but squeezed profits. National Bureau of Statistics data shows nonwoven fabric production by above-scale enterprises surged 9.5% year-on-year, accelerating 5.6 percentage points from the same period in 2025. Tire cord fabric output grew 3.8%, also accelerating. This output growth reflects steady demand from infrastructure, healthcare, and automotive sectors, but profit pressure indicates the industry remains in a 'volume-for-price' adjustment phase.
Revenue Turns Positive, Profits Diverge
Industry revenue turned positive for the first time after consecutive declines, rising 1.7% year-on-year. However, total profits still fell 3%, with operating margin at 3.6%, down 0.2 percentage points. This 'revenue up, profit down' pattern highlights the dual squeeze from raw material cost volatility and end-market price competition.
Sub-sector performance diverged sharply:
- Nonwoven fabrics: revenue up 2.5%, profits surged 9.9%, margin improved to 2.7%.
- Tarpaulins/canvas: revenue up 8.5%, but profits fell 5.7%.
- Ropes/cables: revenue up 1.8%, profits plunged 9.7%.
- Textile belts/tire cord: revenue down 4.1%, profits down 2.4%, but margin edged up to 3.7%.
- Other technical textiles (construction, protective): revenue flat, profits down 11.5%, but margin of 5% remained highest.
This divergence suggests that scale expansion alone no longer guarantees profits; companies must find cost control or technological advantages in niche segments.
Exports Grow Steadily, Belt and Road as Anchor
Customs data shows total exports of technical textiles reached $18.81 billion from January to May, up 5.3% year-on-year. Imports stood at $2.28 billion, up 3.1%. The main drivers were nonwovens (exports $1.93 billion, up 10.7%, volume 770,000 tons, up 13.4%) and absorbent textiles (diapers, sanitary napkins) at $1.76 billion, up 10.7%. Wet wipes exports grew 14.7% to $490 million, the fastest-growing category.
Top three export destinations were the US ($2.21 billion, +3.5%), Vietnam ($1.48 billion, +8.3%), and Japan ($940 million, +0.9%). Exports to Belt and Road countries totaled $11.34 billion, up 5.5%, accounting for about 60% of total exports. This structural shift means future trade重心 will continue moving toward emerging markets, reducing dependence on Europe and the US.
Raw Material Pressure Eases Temporarily
In June 2026, international oil prices dropped significantly as geopolitical premiums faded. Easing tensions in the Middle East, improved navigation in the Strait of Hormuz, and plans by Iraq and other producers to accelerate output led to weaker prices for polyester, nylon filament, and polypropylene. Viscose staple fiber rose modestly due to cost support, but overall raw material pressure eased compared to H1.
For technical textile companies, lower input costs should theoretically boost margins. However, two counteracting factors exist: downstream clients may demand price cuts, and some firms still hold high-cost inventory from earlier periods. The industry's trading logic is shifting from 'geopolitical premium' to 'supply-demand fundamentals', urging companies to focus on real end-demand rather than speculative stockpiling.