A mass-market jacket priced at 500 yuan now carries nearly 40 yuan more in raw material costs; for mid-to-high-end products above 1,000 yuan, the increase can range from 60 to 100 yuan. This is not a deliberate price hike by brands but the result of crude oil volatility seeping through the petrochemical chain. The collective surge in polyester, nylon, and spandex prices is reshaping the cost structure of functional outdoor wear, putting unprecedented pressure on the industry's fixed-price order model.
Cost Side: Raw Material Gains Exceed Expectations
Polyester POY, the primary fabric input for jackets, clearly illustrates the intensity of this shock. Industry data shows prices climbing from 7,000 yuan per ton in late January 2026 to 9,600 yuan by March 10, a gain of over 35%. Even after a pullback, quotes remained high at 9,325 yuan per ton as of March 17, still about 33% above the start of the year. The increases span polyester, nylon, and spandex, with even cotton-related materials rising, indicating pressure spreading across the entire textile input spectrum.
Crucially, the surge is not confined to main fibers. A functional jacket also relies on DWR coatings and seam tapes, whose upstream chemical intermediates are also petrochemical-derived. Thus, from fiber to finishing auxiliaries, the entire supply chain faces simultaneous cost escalation, creating a systemic impact rather than a single-point fluctuation. For functional fabrics deeply reliant on petrochemical processing, this chain-wide transmission is particularly profound.
Industry Impact: Midstream Firms Absorb the Squeeze
Despite upstream volatility, retail prices have not yet adjusted proportionally, as the industry undergoes an internal profit redistribution. Fabric costs typically account for 60-70% of a jacket's total cost, so raw material hikes should logically push up final prices. However, reality is more complex. Fabric and apparel makers report upstream polyester quotes rising up to 15%, but foreign trade orders are often priced months in advance, with contracts locked since late last year. This mismatch leaves fabric mills and contract manufacturers in a bind: raising prices risks losing orders, while holding them means absorbing losses. Export-oriented fabric firms feel this acutely—input costs rise, but selling prices are fixed, compressing margins sharply. For small and medium manufacturers with tight cash flows, this could mean cash crunches or even order losses, heightening the risk of industry consolidation.
Pass-Through to Consumers: Delayed but Inevitable
Some brands are currently buffering the impact using low-cost raw material inventories, keeping retail prices stable for now. But inventories will deplete, and when companies must procure at higher prices, cost pressures will surface. The market generally expects a lagged pass-through: price tags may stay calm in the short term, but autumn/winter new product pricing will face real tests—either through higher prices or reduced discounts to indirectly offset costs.
This episode also serves as a wake-up call: functional apparel's heavy reliance on the petrochemical chain makes it highly sensitive to crude oil. Leading companies can mitigate risks through long-term price locking, inventory buffers, and deep supplier collaboration. Smaller factories and trading firms, however, have limited room to maneuver and are more vulnerable to sharp raw material swings. As long as the crude oil market remains unsettled, downstream fabric and garment enterprises must stay alert to cost pressures.