Textile prices, like many other commodities, are rising due to resurgent demand following the end of the pandemic measures and due to soaring energy and transport costs, according to industry experts.
Cotton, linen, silk and wool, as well as synthetic materials derived from petroleum, have experienced price increases in recent months, also helped by the global supply chain crisis. Inflation is therefore a major talking point at London Fashion Week, which runs until Thursday.
Price increases present a new challenge for the industry, which has already been severely impacted by Brexit and the pandemic.
“Impressive rise in cotton prices”
“The textile and clothing industry has seen an impressive rise in cotton prices,” said Europe’s textile producers’ association, Euratex, in a statement sent to AFP. “The resumption of global activities in 2021 and increased demand from the textile industry have accelerated the mechanism of (market) tensions in raw materials."
“This has led to a shortage and increasing material costs"it said
Cotton, already up nearly 50 percent in price over the last year, hit a high of $1.29 a pound earlier this month, a high not seen since 2011.
Organic cotton from the main producing country India recorded brisk demand due to low inventories.
Wool and linen costs, meanwhile, rose again between September 2020 and June 2021 after falling for almost three years.
Effects of the “Oil Boom”
The industry was also shaken up by the strikingly high oil prices. “The rise in oil prices has impacted the prices of synthetic fibers… as they are made from petroleum-based chemicals or petrochemicals,” noted Euratex.
Oil prices threatened to surpass $100 a barrel last week amid simmering tensions between Ukraine and the country’s top crude oil producer, Russia.
“The continued upswing in oil prices is further fueling the whole thing because it increases the price of synthetic fibers that compete with cotton,” added Commerzbank analyst Carsten Fritsch.
The prices of synthetic fibers – like acrylic, nylon and polyester – have skyrocketed.
Textiles, too, face the same supply chain issues that plague economies around the world.
Retailers and manufacturers are therefore likely to struggle to meet rebounding demand, especially for cotton, the analysis said.
Logistic headache
Demand is high as inflation concerns and logistical issues make it difficult for companies worldwide to source cotton,” Price Group analyst Jack Scoville told AFP.
Importing and exporting companies are facing a huge increase in transportation costs as reopening economies generate feverish demand for containers.
Rogie Sussman Faber, owner of Chicago-area company Vogue Fabrics, told AFP that transportation is her biggest concern.
“Here in the US, we are more affected by the sharp rise in transportation costs than material prices,” said Faber.
Onward transport from the Port of Chicago exacerbates this heavy burden and mirrors transit traffic problems seen elsewhere.
“Since the beginning of the Covid pandemic, we have experienced a shortage of truck drivers, and transport companies have increased their prices to cover fuel costs, overtime (and) bonus payments,” noted Faber.(AFP)
This article was previously published on FashionUnited.uk. Translation and editing: Barbara Russ.