Nonwovens output grew by 9.5% year-on-year, a 5.6 percentage point acceleration, while the technical textiles industry delivered a seemingly contradictory performance in the first five months of 2026: revenue turned positive, but profit decline narrowed only slowly. Behind these figures lies the dual pressure of fading geopolitical premiums and structural demand shifts.
Output and Profitability: Divergence Intensifies, Nonwovens Shine
According to the National Bureau of Statistics, from January to May, nonwovens output by above-scale enterprises grew 9.5% year-on-year, with the growth rate 5.6 percentage points higher than the same period in 2025. Tire cord fabric output rose 3.8%, accelerating by 3.4 percentage points. Production picked up notably, but profit improvement was uneven. Industry-wide revenue increased 1.7% year-on-year, while total profit still fell 3%, with an operating profit margin of 3.6%, down 0.2 percentage points.
By sub-sector, nonwovens performed best, with revenue and profit growing 2.5% and 9.9% respectively, and the profit margin rising to 2.7%. The awning and canvas sector saw revenue up 8.5%, but profit down 5.7%, though its 4.2% margin remained relatively high. The textile tape and tire cord sector saw revenue fall 4.1% and profit decline 2.4%, showing relative weakness. Other technical textiles (construction and protective) saw revenue edge up 0.2%, profit plunge 11.5%, yet their 5% operating margin was the highest in the industry.
What does this divergence mean? The strong growth in nonwovens reflects sustained demand from hygiene materials and wipes, while traditional categories like tire cord and canvas are constrained by slower investment in infrastructure and logistics. For buyers, capacity expansion in nonwovens may trigger price competition, but high-value protective products still command a premium.
Export Structure: Nonwovens and Absorbent Products Lead
China Customs data shows that from January to May, technical textiles exports reached $18.81 billion, up 5.3% year-on-year; imports were $2.28 billion, up 3.1%. The export structure is clearly optimizing: nonwovens exports hit $1.93 billion, up 10.7%, with volume reaching 770,000 tons, up 13.4%, signaling strong overseas demand. Absorbent products (diapers, sanitary pads) exported $1.76 billion, up 10.7%; wet wipes exported $490 million, up 14.7%.
Coated fabrics ranked first with $2.19 billion in exports, but growth slowed to 1%, showing fatigue. Tarpaulins and tents fell 1.2%, and canvas dropped 1.4%, reflecting saturation in outdoor and emergency supplies. Notably, glass fiber products for industrial use exported $1.02 billion, up 12.2%, becoming a new growth driver.
By destination, the US, Vietnam, and Japan were the top three markets, with exports of $2.21 billion, $1.48 billion, and $940 million respectively, growing 3.5%, 8.3%, and 0.9%. Exports to Belt and Road countries reached $11.34 billion, up 5.5%, accounting for about 60% of total exports, indicating that market diversification is paying off. For foreign trade firms, growth in Southeast Asian markets like Vietnam means that Chinese intermediate goods still have room amid supply chain shifts.
Raw Material Costs: Geopolitical Premium Fades, Supply-Demand Logic Returns
In June 2026, international oil prices fell sharply as tensions between the US, Israel, and Iran eased, navigation through the Strait of Hormuz continued to improve, and oil producers like Iraq planned to accelerate output. This directly impacted chemical fiber raw materials: polyester and PET prices weakened, nylon filament ran weak, polypropylene prices entered a downward channel, while viscose staple fiber fluctuated upward amid cost support and pressure.
The fading of geopolitical premiums means the industry's trading logic is shifting from "risk-hedging hoarding" to "supply-demand fundamentals." For factories, lower raw material costs help ease profit pressure, but if downstream demand fails to keep pace, finished product prices may come under further pressure. For buyers, with raw material prices on a downward trend, extending inventory cycles to wait for a better purchasing window may be wise.