Fastmarkets RISI Viewpoint: Raw material costs turning upward for nonwovens producers




BURLINGTON, MA, December 1, 2020-

By Rod Young, Chief Economic Advisor

An extended period of declining raw material costs is ending for nonwovens producers. Prices for most raw materials started to slide in the latter part of 2018. Oil prices began to drop at that time, depressed by slowing growth in the global economy, led by China as newly imposed tariffs into the US market took their toll. Resin prices followed oil prices downward as the cost structure fell and demand weakened along with the economy. Prices of staple fibers based on resins also dropped with producers passing along their reduced resin costs. Viscose staple fiber (VSF) prices also started to decline due to falling demand and huge capacity expansions in China. Cotton prices held through the first quarter of 2019 but then dropped sharply. Prices of all raw materials continued to slide into the fall of 2019 before beginning to stabilize and even post small gains for some products in conjunction with a modest uptick in the Chinese economy.


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