When South America’s “oil heart” skips a beat, every breath of the global polyester supply chain grows heavier.

1.The Transmission Chain: How Oil Affects Textile Fabrics

Oil’s link to textiles goes beyond fuel. Fabrics like polyester, nylon, and spandex are all derived from crude oil. Oil is first refined into naphtha, then converted into intermediates like PX and PTA, and finally polymerized into polyester fiber. Every step of this chain is highly sensitive to oil price fluctuations.

As the country with the world’s largest proven oil reserves, Venezuela’s heavy crude is a key feedstock for Chinese refiners. Recent events have paralyzed its key export hub, Puerto La Guaira, leaving over 17 million barrels of oil stranded at sea and tightening global supply chains.

As the country with the world’s largest proven oil reserves, Venezuela’s heavy crude is a key feedstock for Chinese refiners. Recent events have paralyzed its key export hub, Puerto La Guaira, leaving over 17 million barrels of oil stranded at sea and tightening global supply chains.

2.Upstream Impact: Rising Cost Pressures on Polyester Raw Materials

The cost transmission from oil to apparel has already begun. Refineries in Asia and Europe are forced to seek alternatives from West Africa and the Middle East, pushing up refining costs. A manager at a polyester producer in East China noted, “Market sentiment is driving cost expectations higher, with downstream inquiries and wait-and-see attitudes intensifying.”

A textile fabric company in Jiangsu admitted, “Profit margins on pre-holiday orders are being squeezed by raw material volatility. We have to shorten order cycles to mitigate risks.”

3.Industry Resilience: Domestic Growth and Structural Shifts

Despite external shocks, China’s textile industry shows structural resilience. From January to October 2025, retail sales of apparel, footwear, and textiles reached 1.2 trillion yuan, up 3.5% year-on-year. The industry’s capacity utilization rate stood at 77.6%, higher than the national industrial average.

Foreign trade shows divergence: textile exports rose 0.9%, while apparel exports fell 4.4%. Exports to the U.S. and ASEAN dropped by 10.1% and 4.7%, respectively, driving the industry to expand into emerging markets like the Belt and Road initiative.

4.Policy Support: Proactive Fiscal Policies Boost Domestic Demand

The Central Politburo meeting clarified that a more proactive fiscal policy will continue in 2026. The fiscal deficit ratio rose from 3% to 4% in 2025, providing solid support for the textile industry’s domestic trade. Many companies are shifting focus to the domestic market, developing products tailored to local demand.

5.Future Outlook: Challenges and Opportunities in Industry Transformation

The Venezuelan crisis may reshape the global energy and textile landscape. If U.S. capital helps restore its production, China could secure more stable crude oil supplies, reducing long-term costs for the polyester chain.

Meanwhile, industry adaptation is underway: traders from Zhejiang’s Keqiao are exploring South America with fabric samples, while companies invest in R&D for differentiated products, shifting from cost competition to value creation. Segments like sportswear and eco-friendly fabrics show strong growth.

The resilience of the global textile industry is tempered in “black swan” events. As the pulse of oil beats irregularly, agile supply chain adjustments, deepening presence in emerging markets, and product innovation will be key to navigating the cycle.