In August 2026, textile raw material prices showed a broad upward trend, with PTA rising 6.02% month-on-month, cotton up 5.63%, and polyester DTY up 4.53%. Among the monitored products, 16 rose while only spandex fell slightly by 0.56%, resulting in an average increase of 2.52%. This rally is not an isolated event but a result of cost-push and expectation resonance, squeezing profit margins for downstream weaving, dyeing, and garment enterprises.
Background
According to price data, PTA closed the month at 6,303.50 yuan/ton, a year-on-year increase of 28.87%; cotton ended at 18,419.33 yuan/ton, up 20.17% year-on-year. Polyester filament yarns rose between 2.8% and 4.5%, while nylon series gained 3%-4.5%. Notably, acrylonitrile surged 44.12% year-on-year, the highest among monitored products, indicating widespread cost hikes in chemical fiber feedstocks.
From a supply chain perspective, upstream raw material prices generally rose more than midstream and downstream products. PTA and cotton led the gains, while cotton yarn 21S only inched up 0.29%, polyester yarn 1.40%, and viscose yarn 1.53%. This gradient implies a time lag in cost pass-through, meaning midstream and downstream enterprises have not fully transferred costs, squeezing their margins.
Industry Impact
Inefficient cost transmission will first impact the weaving sector. For example, cotton yarn 32S rose only 0.81% month-on-month to 24,875 yuan/ton, while cotton increased 5.63%, adding about 980 yuan per ton to raw material costs for spinners, but yarn prices only rose by about 200 yuan. The widening gap signals shrinking spinning profits. Polyester chains face similar challenges, with PTA up 6.02% but polyester yarn only up 1.40%, significantly compressing processing margins.
For buyers, this price hike may not signal a trend reversal but a phase of cost-driven increases. Year-on-year data show many products are already at multi-year highs, yet downstream orders have not expanded correspondingly. If end demand fails to absorb the increases, upside is limited and a pullback is possible. Therefore, blindly chasing prices to build inventory is risky, while excessive waiting may miss opportunities to lock in prices.
From an export perspective, rising raw material costs will weaken price competitiveness. Combined with exchange rate fluctuations, this further pressures profits on export orders denominated in foreign currencies. For existing orders, companies need to consider hedging and raw material futures; for new orders, quotes must incorporate cost trends to avoid losses from delayed pricing.