Cotton prices skyrocketing Japan's towel industry is hit hard

According to reports on February 18, on the 17th, the price of cotton on the New York Mercantile market rose by 7 cents on the 16th, reaching a high price of 1 pound to 2.0193 US dollars, breaking the 2 dollar mark for the first time.

There are two reasons why the price of cotton has soared 1.7 times in one year. First, China and other fast-growing countries have increased their demand for clothing and raw materials. Second, major cotton producing areas in Australia and Pakistan have experienced frequent flooding and cotton production has decreased. Therefore, relevant people generally believe that the price of cotton will not come down in a short period of time.

Because it is difficult to transfer the rise in raw material prices to the rise in commodity prices, the soaring price of cotton has had an impact on the towel industry in Japan. Small businesses may even go bankrupt.