The technical textiles sector has shown resilience in early 2026. According to the National Bureau of Statistics, from January to May, nonwoven fabric output by above-scale enterprises grew 9.5% year-on-year, accelerating by 5.6 percentage points compared to the same period last year. Tire cord fabric output also rose 3.8%. This rebound indicates recovering end-user demand, particularly in healthcare, filtration, and civil engineering applications.
Industry-wide revenue turned positive, up 1.7%, while total profit narrowed its decline to 3%, with an operating profit margin of 3.6%. The nonwovens sub-sector performed exceptionally, with revenue and profit up 2.5% and 9.9%, respectively, and its margin improving 0.2 percentage points to 2.7%. This suggests that nonwoven producers have successfully converted growth into earnings through product upgrades and cost control.
Sub-sector divergence highlights value-add
Performance varied sharply across sub-sectors. Tarpaulins and canvas saw revenue up 8.5% but profit down 5.7%, reflecting margin compression from raw material volatility and competition. Ropes, cables, and cordage reported a 1.8% revenue increase but a 9.7% profit drop, with a margin of only 3%, indicating weak pricing power in a commoditized segment.
In contrast, 'other technical textiles' (including construction and protective textiles) achieved the highest operating margin of 5%, despite only 0.2% revenue growth. This underscores the resilience of high-value-added, high-tech products. For buyers, while unit prices are higher, suppliers in this segment offer greater stability and lower price volatility.
Tire cord fabric was the only sub-sector with both revenue and profit declines, down 4.1% and 2.4%, respectively, linked to sluggish demand from the automotive and tire industries. Future trends depend on demand from new energy vehicle components.
Export structure shifts toward emerging markets
Customs data shows exports reached $18.81 billion, up 5.3%, while imports were $2.28 billion, up 3.1%. Nonwoven fabric exports hit $1.93 billion, up 10.7%, with volume of 770,000 tons, up 13.4%. Absorbent products (diapers, sanitary napkins) exported $1.76 billion, up 10.7%, and wet wipes $490 million, up 14.7%, benefiting from global personal care upgrades.
Top three destinations were the US, Vietnam, and Japan, but growth rates diverged: Vietnam up 8.3%, Japan only 0.9%, reflecting intermediate goods trade driven by industrial relocation. Exports to Belt and Road countries reached $11.34 billion, up 5.5%, accounting for 60% of total. This signals a strategic shift from traditional Western markets to emerging economies.
Cost relief as oil prices ease
In June, international oil prices dropped sharply as Middle East tensions eased and the Strait of Hormuz improved. Iraq and other producers plan to ramp up output. Consequently, polyester and nylon filament prices fell, while polypropylene prices began a downtrend. Viscose staple fiber moved up amid conflicting cost support and demand pressure.
With geopolitical premiums fading, the polyester chain is refocusing on supply-demand fundamentals. For technical textile producers, lower raw material costs should boost margins in Q2 and Q3, especially for nonwovens and tire cord. However, risks of oil price rebounds or renewed geopolitical shocks remain.