On July 21, the international crude oil market experienced a sharp intraday reversal. WTI crude climbed from an intraday low of $82.04 per barrel to $85.4 per barrel, expanding the daily gain to 3%; Brent crude followed suit, closing at $89.4 per barrel, up 2.16%. For the chemical fiber sector, this is not an isolated price anomaly but a clear signal of renewed cost pressure.
Background
Intraday, WTI crude dipped to around $82 in Asian trading before buying pressure pushed it steadily higher. By 21:08, it had broken above $85, up 2.52%; by 21:44, the gain reached 3%, settling at $85.4. Brent crude briefly fell below $87 before rebounding above $89.
This rally was driven by escalating geopolitical tensions and tightening supply expectations from major producers. Despite lingering demand concerns due to global economic slowdown, supply-side disruptions dominated pricing.
For the textile industry, every sharp crude oil move propagates along the chain: crude → naphtha → PX → PTA → polyester → filament yarn → weaving. The July 21 surge means raw material costs, which had eased during the oil price correction, are now a key variable again.
Industry Impact
PTA, the direct upstream of polyester filament yarn, is highly correlated with crude oil. Industry data shows that PTA processing margins have been at historically low levels in the second half of 2025. A 3% crude jump directly raises PX costs, squeezing PTA margins and forcing either price hikes or production cuts.
Polyester filament yarn makers in Jiangsu and Zhejiang have already responded with tentative price increases of 100-200 yuan per ton. Weaving mills face a dilemma: accept higher costs or risk raw material shortages. Current polyester filament inventory is at moderate levels, so a concentrated restocking wave could further boost prices.
For export-oriented apparel and home textile companies, cost pass-through takes 2-4 weeks. Since export orders are often fixed-price, margin compression is inevitable in the short term.