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Iran War Oil Shock Starts to Lift Prices for Plastics and Everyday Goods

Higher crude costs are moving through supply chains into materials that many products rely on.

Overview

  • Petrochemical inputs used in more than 6,000 products are getting pricier as suppliers tell manufacturers to expect 10% to 15% higher charges for polyester and acrylic.
  • Polyester staple fiber costs have jumped from about $0.90 to $1.33 per kilogram, which apparel groups say adds roughly 10 to 15 cents to the cost to make each garment.
  • Rinseroo, a small U.S. brand that buys plastic hoses from China, tripled its monthly orders after its factory warned prices would rise 30% within a month.
  • Gentell, a maker of medical dressings that use petrochemical-based adhesives, plans to raise customer prices by about 15% within weeks to cover higher material and energy costs.
  • Consumers are already paying more for gasoline and airfares due to higher fuel costs, and experts warn that if oil stays above $90 a barrel for months, broader retail prices are likely to rise next.