Overview
- An energy shock tied to the Iran war and the near-shutdown of the Strait of Hormuz is pushing up oil-derived polyester costs across Asia, threatening to lift prices for fast-fashion clothing and sneakers that rely on synthetic fibers.
- Market data show India’s polyester staple fibre jumped from 100 to 126.5 rupees per kilo in a month and eased only to 120 rupees by April 9 after tariff cuts, while Filatex reported paying about 30% more for the key feedstocks purified terephthalic acid and monoethylene glycol.
- In Surat, a major polyester hub in India, mills report idle looms and output falling to about 3,500–4,000 metres a day from 10,000, dyeing and printing units now close two days a week, and migrant workers are leaving due to cooking-gas shortages.
- In Bangladesh, Coats Bangladesh raised thread prices by 15.5% effective April 15, H&M said it sees no major disruption so far, and an unnamed industry source told Reuters the retailer expects supplier price increases but plans to absorb them.
- Upstream and logistics pressures are mounting as fiber and chemical makers announce price hikes and war-related detours add 15–20 days and roughly 25–30% to shipping costs, which could widen cost pass-through across apparel given polyester makes up about 59% of global fiber use.