US EditionIran war hits Asia's polyester suppliers to global fast fashion
Polyester makers say feedstock costs have jumped nearly 30% as Middle East supply disruptions cut output and push retailers toward higher prices.
- A surge in fossil fuel prices following the Iran war is forcing polyester suppliers in India to halve production. In Surat, Radheshyam Textile owner Kaushik Dudhat reported daily output fell from 10,000 metres to 4,000 metres.
- Filatex, one of India's biggest polyester yarn producers, is paying nearly 30 per cent more for petroleum-derived feedstocks like PTA and MEG. Managing director Madhu Sudhan Bhageria attributed the squeeze to Chinese suppliers raising prices and Middle East supply disruptions.
- Rising costs have caused textile dyeing factories in Surat to shut two days a week, said Kailash Hakim, president of the Federation of Surat Textile Traders Association. Coats Bangladesh announced a 15.5 per cent price increase effective April 15.
- Bindal Silk Mills CEO Avichal Arya said the energy crisis had "drastically" pushed up chemical costs, leaving him unable to meet global orders fruitfully. Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, warned buyers are becoming cautious about order volumes.
- If conditions persist for one more month, Wood Mackenzie principal analyst Bruna Angel projects retailers will face "demand destruction" as consumers cut purchases. Globally, recycled polyester still accounts for just 12 per cent of production, limiting mitigation options.
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Energy shock from Iran war may make shopping from Zara, H&M more expensive; sneakers to get costly too
Polyester, which is made from oil derivatives, dominates the textile industry as it accounts for 59% of global fibre production. It is used in everything from dresses to athleisure wear.
Expensive oil squeezes Asia's textile production Asia - the world's sewing room - is now feeling the consequences of the escalating conflict in Iran and the increased oil prices. In addition to transport delays and growth
Iran war hits Asia's polyester suppliers to fast fashion
A surge in fossil fuel prices since the Iran war is squeezing polyester suppliers and garment makers across India and Bangladesh, threatening to raise costs for fast-fashion retailers like Zara and H&M. Filatex, one of India’s biggest polyester yarn producers, is paying nearly 30 percent more for the petroleum-derived feedstocks – purified terephthalic acid (PTA) and monoethylene glycol (MEG) – that it needs to make yarn, as Chinese suppliers ra…
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