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Power Cuts Could Increase Chinese Textile Prices

Workers in a fabric dye factory in Hangzhou, China. Getty Images.
Workers in a fabric dye factory in Hangzhou, China. Getty Images.

Planned shutdowns in industrial hubs like Jiangsu, Zhejiang and Guangdong could send prices of textiles and garments up in coming weeks, Fibre2Fashion writes.

China is struggling with severe electricity shortages. While its factories need more electricity than ever to cope with surging demand for exports as other countries reopen, coal supply from Australia has slowed and rules aimed at making the country carbon neutral by 2060 have further slowed coal production, which China relies on for more than half of its power supply.

A source tells Fibre2Fashion that new rules prohibit factories from opening for the full working week. One source estimates that prices will rise in their city by 30 to 40 percent as a result. The shutdowns could continue until December 2021, given Beijing’s goals to curb emissions in the lead up to the Winter Olympics in February 2022.

Learn more:

Why Sourcing From China Just Got More Expensive

Surging demand and supply disruptions are driving up prices for raw materials, labour and shipping in fashion’s largest manufacturing hub.

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