Nonwovens output grew 9.5% year-on-year, and cord fabric increased by 3.8%—this is the production scorecard for China's technical textiles industry in the first five months of 2026. On the revenue front, enterprises above designated size turned from decline to growth, with a modest 1.7% increase. Total profits were still down 3%, but the decline narrowed significantly from earlier periods. These figures suggest the industry is slowly climbing out of a trough, but the fortunes of different sub-sectors vary widely.
Nonwovens Lead, Profit Divergence Reveals Structural Issues
Nonwovens are undoubtedly the brightest spot. Their revenue grew 2.5%, and profits surged 9.9%, with an operating profit margin of 2.7%, up 0.2 percentage points. Output growth accelerated by 5.6 percentage points compared to the same period in 2025, indicating sustained demand from hygiene, medical, and filtration applications.
However, not all sub-sectors are recovering in sync. Tarpaulins and canvas saw revenue rise 8.5%, but profits fell 5.7%, and margins dropped 0.6 percentage points, suggesting intensifying price competition or cost erosion. Ropes, cables, and cords had a slight 1.8% revenue increase but a sharp 9.7% profit decline, squeezing margins. Textile belts and cord fabric even saw revenue fall 4.1%, the only sub-sector with negative growth.
This profit divergence indicates that the industry is not experiencing a broad recovery but rather accelerating structural adjustment. High-value, high-tech products like nonwovens are capturing market share, while traditional low-end categories face dual pressures of weak demand and rising costs.
Steady Export Growth, Belt and Road as Core Engine
From January to May 2026, industry exports reached US$18.81 billion, 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 technical fabrics led with US$2.19 billion in exports, but growth was only 1%, showing fatigue. Nonwovens exported US$1.93 billion, up 10.7%, with volume reaching 770,000 tons, up 13.4%. Absorbent textiles (diapers, sanitary pads) exported US$1.76 billion, up 10.7%; wet wipes exported US$490 million, surging 14.7%. These data point to a trend: China's technical textiles are shifting from 'volume-driven' to 'value-driven,' with a rising share of high-value end products.
By market, the US, Vietnam, and Japan remained the top three destinations, with exports of US$2.21 billion, US$1.48 billion, and US$940 million, up 3.5%, 8.3%, and 0.9%, respectively. Notably, exports to Belt and Road countries reached US$11.34 billion, up 5.5%, accounting for about 60% of total exports. This suggests that geopolitical risk diversification is working, and emerging markets are becoming a stable anchor for industry exports.
Raw Material Costs Decline, but Transmission Mechanism Needs Watching
In June, international oil prices fell sharply as the US-Israel-Iran situation eased, navigation in the Strait of Hormuz improved, and oil producers like Iraq planned to accelerate output. Polyester and nylon filament prices weakened, polypropylene prices began a downward channel, and only viscose staple fiber rose due to cost support and pressure.
For technical textile companies, lower raw material costs should be a positive. However, given the profit divergence—some sub-sectors saw revenue growth but profit decline—the benefits may not be effectively passed downstream, but rather absorbed by price wars or inventory write-downs. Companies need to be wary of a vicious cycle where 'costs fall, but selling prices fall even more.'