On February 18, it was reported that on the 17th, cotton prices on the New York Mercantile Exchange climbed by 7 cents, reaching a record high of $2.0193 per pound—marking the first time the price has crossed the $2 threshold.

Over the past year, cotton prices have surged by 170%, driven by two main factors. First, growing economies like China have significantly increased their demand for textiles and raw materials. Second, major cotton-producing regions such as Australia and Pakistan have faced severe flooding, which has led to reduced harvests and lower supply. As a result, industry experts predict that cotton prices are unlikely to drop in the near future.

The sharp rise in cotton prices has created challenges for manufacturers, particularly in Japan’s towel industry. With rising production costs and limited ability to pass these increases onto consumers, small businesses are especially vulnerable. Some companies may struggle to stay afloat, with fears of potential bankruptcies looming over the sector. This situation highlights the broader economic ripple effects of commodity price volatility.