Recently, textile/clothing prices have fluctuated significantly, primarily due to oil prices.
Rising oil prices lead to higher textile prices, primarily due to cost transmission:
Direct Increase in Chemical Fiber Costs: Chemical fibers account for nearly 60% of textile raw materials, and their upstream petrochemical raw materials are directly derived from oil. Rising oil prices will push up costs along the industrial chain, from chemical fibers to fabrics and ultimately to garments.
Passive Increase in Natural Fiber Costs: Higher chemical fiber prices can shift some demand towards natural fibers like cotton, driving up their prices. Additionally, aspects such as the fertilizers needed for cultivation and transportation are also dependent on oil, so rising oil prices increase their overall production costs.
Therefore, as a fundamental industrial raw material, oil price fluctuations are transmitted through the industrial chain, ultimately pushing up textile prices.
