Prices of international raw oil have increased to US $95 per bucket and this will consequently increase the prices of chemical fabric and the cost of shipping.
Chinese fabric exporters are facing the heat because even with a 10 percent increase in raw oil's price will make international shipping cost increase by about 50 percent. Moreover, the cost of Chinese chemical fabric would also increase by about 20 percent since PTA, a material used in processing the fabric, is drawn from raw oil price
Besides, the current international cost of shipping has nearly doubled compared to the beginning of this year. Chinese enterprises have already started to bring a hike in the prices of chemical fibre.
However, with such price inflation the demand for the fabric may dampen propelling dealers to stagnate the prices which in turn would lower their profit margins.
Fibre2fashion News Desk-China
marketing@alchempro.com
