Carbon fiber prices have been raised urgently, effective from April.
Global fiber giant issues emergency price increase notice
On March 30, Toray Industries, Inc., a global giant in fiber and high-end materials, issued an official announcement stating that due to the surge in upstream petrochemical raw material prices caused by the ongoing geopolitical tensions in the Middle East, it will implement an emergency price increase for all its products , including synthetic fibers for apparel and industrial use, staple fibers, and nonwoven fabrics. The new pricing system will officially take effect from the shipment batches in April 2026. The carbon fiber business, which has attracted much market attention, is not included in this price increase , but the industry generally believes that due to the rising costs across the entire supply chain, Toray carbon fiber is likely to see significant price increases in the future .
The surge in oil prices was mainly due to tensions in the Middle East.
In its announcement, Toray clearly stated that the core reason for this emergency price adjustment was the recent escalating tensions in the Middle East, which directly led to a sharp surge in the prices of upstream base crude oil and petrochemical raw materials. This increase far exceeded what the company could absorb through internal cost reduction, efficiency improvement, and lean management. To prioritize ensuring a continuous supply of raw materials needed for stable production and to maintain long-term stable supply cooperation with downstream customers, the company ultimately decided to implement an emergency price adjustment as a response measure, passing on reasonable costs to downstream customers. Toray also emphasized that this price adjustment for general-purpose synthetic fibers is only a temporary emergency measure to address the rapidly deteriorating situation in the Middle East. The company will continue to monitor changes in upstream raw material, auxiliary material, and logistics costs and dynamically adjust product prices accordingly.
It is worth noting that this price adjustment only covers Toray's general-purpose synthetic fibers and related nonwoven products. Its full range of carbon fiber products, which have the highest global market share and the most advanced technology, are not included in this price increase. The current pricing system and supply policy for carbon fiber products remain unchanged and are being implemented stably.
From the production perspective, carbon fiber is a typical high-energy-consuming industry. Core processes such as spinning, pre-oxidation, and carbonization have extremely high energy demands, including electricity and natural gas . Energy costs alone account for 15%-30% of the total cost of carbon fiber . Affected by geopolitical conflicts in the Middle East, the Japanese energy market has experienced significant fluctuations, with the spot electricity price on the Japan Electricity Exchange rising by as much as 30% this year, further amplifying the production cost pressure on Toray's domestic carbon fiber production lines.
In addition, the solvents, oils and other auxiliary materials required for carbon fiber production are all petrochemical derivatives, and their prices rise in tandem with crude oil . The instability of the global supply chain caused by geopolitical instability, the increase in international logistics costs, and the growth in preventative stockpiling demand from downstream aerospace, wind power, and high-end equipment industries to ensure supply chain security all have a continuous and cumulative impact on the supply and demand pattern and cost of carbon fiber products.
