Bolt of Cloth
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Bolt of Cloth is a Material that is used to upgrade your ship in the Dry Dock/Floating Dock. Like most Materials, It is found near coasts and shipwrecks as Shapes In The Deep. They cannot be purchased from anywhere but can be sold.
In The Iron Rig DLC, 2x Cloth can be crafted at the Foundry for the cost of 1x Ironhaven Crate and $10.