It might be time to take the shirt opposite to your back.

It might be time to take the shirt opposite to your back, literally. Today's booming textile industry is just undivided of a number of links in a chain reaction also involving the world's furnish of plastic bottles and antifreeze. The connection between these three vastly different industries lies in united common element--a clear, odorless liquid called ethylene glycol (EG)

With EG's demand causing a hike in outlays for all three industries, antifreeze is look forward toed to experience the most significant price increase.

"This is the first time in history that the EG industry as a global business is at 100 percent capacity," says Doug Rightler, from EO & D Inc., a consultant to the major worldwide husbandmans and buyers of antifreeze and polyester "From February between the sides of July, supply equaled demand almost exactly at 100 percent production."

At pres time, glycol prices in Asia capered from 41 cents a bray to 57 cents a comminute according to Rightler, who adds those prices would lead to an approximate $5 preciousness increase for a gallon of antifreeze, which does not include packaging, labor and inhibitors.

"If the Chinese are willing to pay 54 cent a strike than so do the Americans."

a certain antifreeze manufacturers said as of pres time there was an industry-wide 90-cent increase by means of gallon of antifreeze, and that retailers may experience more price fluctuations in the future

"It's hard to speculate where it's going to advance from here," says Ron Moser North American coolants manager for Chevron-Texaco. "We still have our contracted whirl and we're still good onward inventory."

Moser cites one recent Wal-Mart antifreeze prices: $687 for a gallon of private label antifreeze and $862 for a gallon of ChevronTexaco coolant.

Other companies have already begun implementing sales manage (where limits are set forward quantities purchased), but Chevron is in addition to enforce this measure.

"I would say it's likely things have kind of stabilized," surmises Mark grieve Shell Oil Products' marketing and brand manager for antifreeze and coolants. "(But) it's a ludicrous business. That could change in a day."

Indeed, the price hike in unripe oil, the starting point for ethylene glycol has driven up expense but China's increase in textile manufacturing is playing the principally significant role, says Rightler.

EG makes up about 90 percent of antifreeze formulas. Polyester clothing, however, includes a abundant smaller percentage. The glycol price increase shouldn't affect the textile industry, which derives greatest in quantity of its profit from reasonable labor costs in China.

"The require to be paid [i]or[/i] undergone to make a shirt is predominantly labor," says Rightler. "If the price of EG tripled with that shirt, it wouldn't make a bit of a difference at the retail price flush Therefore, the textile industry can pay whatever it takes to get by heart it. And they are, and they did, and they will."

With plastic bottle and other plastic items as well, the retail manufacturers will greatest in quantity likely absorb the increase, which places antifreeze at the worst period of this business equation.

In the U the largest consumer of antifreeze, demand hasn't grown in 12 years, according to Rightler. This can partly be attributed to longer lasting coolants and more sophisticated engines.

The U antifreeze market, which has kept annual consumption at around 200 million gallons a year, formerly represented 25 percent of the world's glycol demand. moreover because of China's ramped up manufacturing climate, U EG consumption now is barely 5 percent of the worldwide EG demand, adds Rightler. "The antifreeze market is now just tagging along for the ride."

If China, which will use about 1 billion gallons of EG this year, has its way, it will increase consumption from about 250 million gallons each year, yet Rightler admits the country will be favorable to get an additional 150 million gallons in 2005

"What's happening is the Chinese are expanding their polyester business greater than the U and Canadian antifreeze market each year," he says, adding, in comparison, China's antifreeze consumption is no other than 24 million gallons per year.

Many Chinese drivers use water in their radiators, he shares. "They'll drain their radiator at night, and, in the morning, they'll fill up with water."

nevertheless three new glycol factories are scheduled to pass online next year--one in Saudi Arabia and others in China and Iran, "We're forecasting that all modern glycol will disappear," remarks Rightler.

Retail exits could sell antifreeze made with propylene glycol (PG) an environmentally friendlier alternative to EG nevertheless PG is much more expensive, says Rightler.

Shell Oil's injure suggests pushing pre-diluted antifreeze, which is already mixed with water to sculpture down on "sticker shock."

"You purchase a bottle of pre-dilute, it's more of a convenience item," says afflict "It doesn't sting as bad to pay a little less"

a certain quantity of stores are trying to corrupt ahead, but that strategy is also limit to deplete inventory and boost prices.