The cost of raw materials for textile production is rising as a result of the steady rise in crude oil prices to meet expanding consumer demand. According to a study by the American Petroleum Institute (API) and Energy Information Administration (EIA), the price of crude oil is increasing as a result of increased crude oil inventory drawdown, significant flooding, and widespread power outages caused by heavy rainfall in Texas and Louisiana.
Additionally, hurricane Nicholas, which made landfall in the Gulf of Mexico in mid-September, brought flooding, strong winds, and a lot of rain to the Texas coast and northern Gulf Coast. This caused a disruption in the chain of supply for crude oil and had an effect on the US energy output.
Additionally, several OPEC countries like Kazakhstan, Nigeria, and Angola are having trouble maintaining their crude oil extraction facilities as a result of the epidemic, which has caused a shortage of crude oil globally and driven up prices.
The cost of raw materials for textile production is rising as a result of the steady rise in crude oil prices to meet expanding consumer demand. According to the API and EIA reports, crude oil prices are rising as a result of higher crude oil inventory draws, widespread flooding, Hurricane Nicholas, and power disruptions caused by heavy rains in Texas and Louisiana.
The US financial markets’ upward trend and OPEC and its allies’ forecast of a gradual increase in crude oil supplies kept prices high.
Brent crude’s weekly average price fell from $73.98 per barrel in July 2021 to $70.36 per barrel in August 2021, a 4.90% decrease. According to Fibre2Fashions market analysis tool TexPro , it recovered in September 2021 to reach $75.78 a barrel, up 7.71% from the weekly average in August 2021.
WTI Cushing and Nymex crude’s weekly average price fell by 6.64 percent, from $72.20 per barrel in July 2021 to $67.41 in August 2021. In September 2021, it jumped once again by 7.26% to reach $72.31 per barrel.
The cost of textile raw materials including polyester staple fiber, nylon staple fiber, and acrylonitrile is increasing along with the price of crude oil.
Since July 2021, the pricing of polyester staple fiber at Free on Board (FOB) NE Asia has changed. The price in the first week of July 2021 was $1,011 per metric ton. The cost then rose to $1,035 per metric ton during the final week of July 2021 before falling once more to $975 during the final week of August 2021. The last week of September 2021 saw a 4.11 percent increase, bringing the price per metric ton to $1,015 instead.
From $16,320 per metric ton in the first week of July 2021 to $16,400 per metric ton in the last week of August 2021, the cost of nylon staple fiber increased on the Chinese market. In the final week of September 2021, it increased further by 13.72 percent, reaching $18,650 per metric ton, according to TexPro.
The FOB US Gulf price of acrylonitrile was $2,020 per metric ton in the first week of July 2021 and moderately increased to $2,122 per metric ton in the final week of August 2021. In the final week of September 2021, it reached $2,350 per metric ton after continuing to rise.
Newspaper Fibre2Fashion Desk (KD)