The rise in oil prices will push up the price of tent fabrics. The core reason is that the mainstream fabric for tents is petroleum based synthetic materials. The increase in oil prices is transmitted through the entire chain of petrochemicals, fibers, and fabrics, and the specific path is as follows:
1. The core material of tent fabric comes from petrochemicals
The commonly used polyester, nylon, PVC, PU and other materials for tents are all petroleum based synthetic materials, and their production relies on the basic raw materials after crude oil cracking:
Polyester/Nylon: Made by polymerizing PX, PTA, ethylene glycol, and other materials extracted from crude oil, with oil prices directly determining raw material costs;
Waterproof coating: PVC, PU and other resins also come from petrochemicals, and the cost of coating can account for 10% -30%;
Industry data shows that petroleum based raw materials account for 58% -62% of tent fabric costs, and fluctuations in oil prices have a significant impact on costs.
2. Clear cost transmission path
Rising oil prices → Rising prices of triphenylene (ethylene, propylene, benzene, etc.) → Rising costs of fibers such as polyester and nylon → Increased costs of fabric weaving and coating processing → Ultimately leading to an increase in tent fabric prices.
For example, the rise in crude oil prices in 2022 will drive up the cost of polyester and nylon by about 15%, and the cost of fabrics will generally increase by 10% -20% in 2023.
3. Increase in other indirect costs
Transportation costs: The increase in prices of petroleum derived fuels (diesel, gasoline) has raised energy costs for fabric transportation and factory production;
Environmental Protection and Certification: High oil prices have led to stricter environmental policies, resulting in increased research and development costs for recycled materials or biobased fabrics, further driving up prices.
Summary in one sentence: Tent fabrics are made from petrochemical products as the core raw material, and rising oil prices will transmit costs through the entire industry chain, ultimately leading to an increase in fabric prices.
Our tent cost price is bound to be affected as well. We will further optimize the production process and reduce other costs while ensuring quality, so that customers can buy military tents, disaster relief tents, etc. with higher cost-effectiveness.
