China Security Times (SecuTimes or STCN) recently reported that, China’s textile industry holds a leading position globally, and the price of synthetic fibers, a core raw material for the textile industry, is directly linked to crude oil prices. Since the outbreak of the US-Israel-Iran conflict, the production of China’s domestic chemical fiber companies are facing challenges.
As rising crude oil prices drive up synthetic fiber prices, the overall price of polyester has increased by more than 10 percent in the past month. The head of a chemical fiber company in Jiangsu Province, said that the factory is currently operating at full capacity, with orders booked for at least 30 days. Many companies stated that they will not just reduce production at present, firstly because downstream demand remains consistent, and secondly because restarting operations after a shutdown would result in greater losses. They are also hedging against price fluctuations through dynamic inventory management and adjusting price quotations in real time.
Synthetic fibers are the basic raw material for fabric production, accounting for more than 60 percent of the total cost of fabrics. Companies are facing supply shortages while raw material prices have recently risen. The impact of geopolitical tensions in the Middle East is gradually spreading from the energy sector to the chemical and high-end manufacturing supply chains.
Source: STCN, April 7, 2026
https://www.stcn.com/article/detail/3729133.html