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The Impact of the Middle East War on Non-Woven Fabric Prices

The Middle East war has become a key factor affecting the global non-woven fabric market, triggering fluctuations in raw material prices, disrupting supply chains, and reshaping market supply and demand patterns. For non-woven fabric manufacturers, distributors, and downstream users (such as the hygiene products, medical supplies, and building materials industries), understanding the mechanism by which the Middle East war affects non-woven fabric prices is crucial for formulating reasonable procurement plans, controlling production costs, and responding to market risks. This article will deeply analyze the specific impact of the Middle East war on non-woven fabric prices, explore the underlying logic, and provide practical references for relevant practitioners.

1. Core Link: The Middle East War Drives Up Non-Woven Fabric Raw Material Prices

Non-woven fabrics are mainly made of chemical fibers such as polypropylene (PP), polyethylene (PE), and polyester (PET), and the production of these chemical raw materials is highly dependent on crude oil. As the world's core crude oil production and export region, the Middle East accounts for more than 30% of global crude oil output. The outbreak and escalation of the war have directly disrupted the stable supply of crude oil in the region, leading to a sharp rise in international crude oil prices, which in turn has pushed up the cost of non-woven fabric raw materials.

Since the escalation of the Middle East war, the price of Brent crude oil futures has soared from around $60-$70 per barrel to more than $110 per barrel, with an increase of nearly 50%. Crude oil is the upstream raw material for chemical fibers such as polypropylene and polyethylene, and the rise in crude oil prices will be directly transmitted to the chemical fiber industry. According to industry data, for every 10% increase in crude oil prices, the cost of polypropylene will rise by about 8%-10%, and the cost of non-woven fabrics will also increase by 6.2% accordingly. At present, the price of polypropylene, the main raw material for non-woven fabrics, has increased by 30%-35% compared with the pre-war period, and the prices of other raw materials such as polyester have also risen by 15%-20%.

In addition, the Middle East is also an important chemical fiber production base. Some chemical plants in the region have suspended production or reduced production due to the impact of the war, further reducing the global supply of chemical fiber raw materials and exacerbating the imbalance between supply and demand. For example, some large petrochemical enterprises in Saudi Arabia, Iran and other countries have temporarily shut down some production lines due to transportation difficulties and safety risks, directly leading to a shortage of polypropylene and polyethylene supply in the international market and driving up raw material prices.

2. Supply Chain Disruption: Logistics Obstacles Increase Non-Woven Fabric Transportation Costs

The Middle East is not only a major producer of non-woven fabric raw materials, but also an important hub of global maritime transportation. The war has severely disrupted the normal operation of maritime routes in the region, especially the Strait of Hormuz and the Bab-el-Mandeb Strait, which are crucial for global energy and commodity transportation.

The Strait of Hormuz is the main channel for Middle East crude oil exports, with about 30% of global crude oil transported through this strait every day. At present, the navigation situation of the strait is severe. The Islamic Revolutionary Guard Corps Navy of Iran has repeatedly emphasized its control over the strait, and the United States has also sent troops to the region, increasing the risk of navigation interruption. In addition, the Bab-el-Mandeb Strait, which connects the Red Sea and the Gulf of Aden, is also facing the risk of being blocked, with about 12% of global oil transportation passing through this strait. If the war spreads to the Red Sea region, navigation in the strait will be severely affected, further exacerbating the global supply chain crisis.

The disruption of maritime routes has led to a sharp increase in shipping costs. The shipping cost from the Middle East to Asia and Europe has increased by more than 50% compared with the pre-war period, and the shipping cycle has also been extended by 1-2 weeks. For non-woven fabric manufacturers and distributors, the increase in transportation costs has further raised the overall cost of products. At the same time, due to the uncertainty of navigation, many enterprises have to choose alternative routes or increase inventory, which has also increased the operational pressure on enterprises.

It is worth noting that some Chinese enterprises have laid out production bases in the Middle East to avoid logistics risks. For example, the 1st and 2nd production lines of Tiandingfeng Saudi Factory, a subsidiary of Oriental Yuhong, have been put into production with an annual capacity of 25,000 tons. Relying on the superior geographical location of the Middle East, the factory can effectively shorten the international transportation radius, reduce transportation costs, and provide stable supply guarantee for the Middle East and surrounding markets. In addition, Yanjiang Co., Ltd. also has an annual production capacity of 10,000-15,000 tons of hot-air non-woven fabrics in its Egyptian subsidiary, which has strong competitiveness in the local market.

3. Market Demand Fluctuations: The Dual Impact of Emergency Demand and Economic Downturn

The Middle East war has had a dual impact on global demand for non-woven fabrics, which has also affected the price fluctuations of non-woven fabrics to a certain extent.

On the one hand, the war has led to a surge in emergency demand for non-woven fabrics in war zones. Non-woven fabrics are widely used in medical supplies (such as masks, surgical gowns, bandages), disaster relief materials (such as temporary tents, waterproof cloth), and daily hygiene products. In war-affected areas, the demand for medical supplies and disaster relief materials has increased sharply, driving the short-term demand for non-woven fabrics and pushing up the price of non-woven fabrics in the regional market. For example, the price of medical non-woven fabrics in the Middle East has increased by 20%-30% compared with the pre-war period, and the supply is tight.

On the other hand, the war has led to a global economic slowdown, especially in the Middle East and surrounding regions. The economic recession has led to a decline in demand for non-woven fabrics in downstream industries such as construction, automotive, and home textiles. For example, the construction industry in the Middle East has come to a standstill due to the war, and the demand for non-woven fabrics used in waterproofing, thermal insulation and other fields has dropped sharply. At the same time, the global economic slowdown has also led to a decline in consumer purchasing power, and the demand for daily hygiene products (such as sanitary napkins and diapers) has also been affected, putting downward pressure on the price of non-woven fabrics.

Taking the hygiene products industry as an example, more than 80% of the core raw materials of sanitary napkins and diapers come from petrochemical products, including non-woven fabric surface layers made of polypropylene, leak-proof bottom films made of polyethylene, and hot-melt adhesives used for bonding. Affected by the rise in raw material prices, the overall production cost of hygiene products has increased by about 20%, and the ex-factory price has increased by 10%-15%. However, due to the time lag in price transmission, the terminal retail price has not yet been fully adjusted, and some brands may adopt implicit price increase methods such as "reducing quantity without increasing price". Henkel China, a global adhesive giant, even announced a 20% price increase for all its products on the grounds of out-of-control raw material procurement costs.

4. Long-Term Impact: Industry Pattern Adjustment and Enterprise Response Strategies

The impact of the Middle East war on non-woven fabric prices is not short-term. If the war persists, it will further reshape the global non-woven fabric industry pattern and force enterprises to adjust their development strategies.

In terms of the industry pattern, the shortage of raw materials and the increase in transportation costs will accelerate the elimination of small and medium-sized non-woven fabric enterprises with weak cost control capabilities. Large enterprises with scale advantages, technological advantages and global layout will further expand their market share. For example, Oriental Yuhong has built a global production, R&D and logistics base, integrated world-class equipment and cutting-edge technologies, and built more than 200 world-leading production lines, which can effectively control production costs and ensure stable supply. At the same time, more enterprises will choose to layout production bases in regions with stable raw material supply and convenient transportation, reducing their dependence on the Middle East raw material market and transportation routes.

For non-woven fabric enterprises, in the face of the impact of the Middle East war, the following response strategies can be adopted:

1. Optimize raw material procurement channels: Expand the source of raw materials, reduce dependence on Middle East crude oil and chemical fibers, establish long-term cooperative relations with raw material suppliers in other regions such as Asia, Europe and the Americas, and ensure the stability of raw material supply. At the same time, adopt a dual raw material procurement strategy of "fixed polypropylene contract price + dynamic recycled fiber procurement" to control the fluctuation of raw material costs.

2. Strengthen cost control: Improve production efficiency through technological innovation, reduce raw material consumption and energy consumption. For example, the independently developed "one-step" polyester anti-stick needle-punching process of Tiandingfeng has comprehensively broken through and surpassed traditional base cloth, and the independently developed "glass fiber reinforced polyester filament base cloth" has filled the gap in the domestic market, which can effectively reduce production costs. In addition, enterprises can also reduce operating costs through lean management methods such as intelligent warehousing and AGV robots.

3. Adjust product structure: Increase the R&D and production of high-value-added non-woven products (such as medical-grade antibacterial non-woven fabrics and degradable non-woven fabrics), improve product profit margins, and reduce the impact of raw material price fluctuations. For example, the price premium capacity of medical-grade antibacterial non-woven fabrics continues to increase, with a compound annual growth rate of 11.3%, which is 6.8 percentage points higher than that of ordinary non-woven fabrics.

4. Establish a risk early warning mechanism: Pay close attention to the development of the Middle East war and the fluctuation of international crude oil prices, establish a market price early warning mechanism, and adjust procurement and production plans in a timely manner. At the same time, use financial tools such as futures hedging to lock in raw material prices and reduce the impact of price fluctuations on enterprises.

5. Conclusion: Grasp Market Trends and Proactively Respond to Risks

The Middle East war affects non-woven fabric prices through multiple channels such as raw material prices, supply chains, and market demand, bringing both challenges and opportunities to the global non-woven fabric industry. For non-woven fabric manufacturers, distributors, and downstream users, it is crucial to accurately grasp the impact of the war on the market, formulate scientific response strategies, and proactively adapt to market changes.

In the short term, affected by the rise in raw material prices and supply chain disruptions, non-woven fabric prices will continue to fluctuate at a high level. In the long term, with the adjustment of the global industrial pattern and the advancement of enterprise technological innovation, the non-woven fabric industry will gradually adapt to the new market environment, and prices will tend to be stable. It is expected that if the Middle East war eases and crude oil prices fall back, non-woven fabric prices will also adjust accordingly; however, if the war persists, the industry will face longer-term cost pressure and market adjustments.

In the context of global economic integration, regional conflicts have a profound impact on the industrial chain. Only by strengthening risk awareness, optimizing development strategies, and improving core competitiveness can non-woven fabric enterprises remain invincible in the changing market environment.

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Author: HYFabricsupply