In August 2026, the textile raw material market experienced a broad price rally, with 16 of 17 monitored commodities in the sector rising month-on-month, averaging a 2.52% increase. PTA led with a 6.02% monthly gain, followed by cotton at 5.63%, while polyester DTY and nylon POY both rose over 4%. This upward movement is not an isolated event; year-on-year data hint at deeper cost and demand dynamics reshaping the supply chain.
Background
In absolute terms, PTA closed the month at 6,303.50 CNY/ton, up 357.75 CNY from the start of August, and surged 28.87% year-on-year, the largest annual increase among all tracked products. Cotton ended at 18,419.33 CNY/ton, up 20.17% year-on-year, indicating that cotton prices have moved away from low-level ranges. Within the chemical fibre chain, polyester DTY, nylon POY, polyester staple fibre, and nylon FDY rose between 3% and 4.5% monthly, with annual gains mostly exceeding 14%. Acrylonitrile stood out with a 44.12% year-on-year surge, becoming the most prominent cost pressure point.
Notably, viscose staple fibre and spun rayon yarn rose modestly at 1.41% and 1.53%, respectively, while spandex was the only product to fall, down 0.56% month-on-month, though still up 21.65% year-on-year. This divergence suggests distinct supply-demand balances across fibres: spandex's decline may relate to capacity release, while the strength in chemical fibre upstream is largely cost-driven.
Industry Impact
The price surge transmits along the chain in a stepwise manner. PTA, as the core polyester feedstock, directly raises production costs for polyester filament and staple fibre. The follow-up gains in polyester DTY, POY, and FDY ranged from 1.1% to 4.5%, indicating incomplete cost pass-through, which may compress margins for midstream processors. For weaving mills that rely heavily on polyester, higher raw material costs will directly erode profits, especially if downstream order prices do not adjust simultaneously.
Cotton's 5.63% rise to 18,419 CNY/ton hits cotton spinners even harder. Cotton yarn 32S and 21S rose only 0.81% and 0.29%, respectively, far below the cotton price increase, meaning spinners face a much larger cost increase than product price increase, significantly squeezing margins. This 'cotton up, yarn not up' pattern may prompt mills to adjust cotton blending ratios or switch to substitute fibres, affecting downstream fabric pricing.
Exporters must be wary of cost-push inflation affecting order competitiveness. With chemical fibre products up around 20% year-on-year, overseas clients with annual framework agreements will face significant price renegotiation pressure. Meanwhile, acrylonitrile's 44% annual surge will transmit to acrylic downstream products, potentially triggering another wave of cost-driven price hikes. For companies relying on imported raw materials, currency fluctuations add further cost uncertainty.
Looking ahead, the strong performance of PTA and cotton may extend into Q4. High crude oil prices support PTA costs, while supply tightness before new cotton harvest remains unresolved. However, if downstream demand fails to recover in tandem, excessively high raw material prices may dampen purchasing intentions, leading to a 'price without volume' scenario.