Iran war drives up polyester costs for global retailers
Surging petroleum prices have raised raw material costs by 30 percent for textile firms in India and Bangladesh. Retailers like Zara and H&M face potential price hikes as factory production slows and fuel shortages drive migrant workers away from textile hubs.
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Xurve View
The escalating conflict involving Iran has triggered a significant surge in fossil fuel prices, creating a severe supply chain squeeze for polyester manufacturers and garment producers across India and Bangladesh. This energy-driven inflation is threatening to raise retail costs for global fast-fashion giants as the price of petroleum-derived feedstocks, such as purified terephthalic acid (PTA) and monoethylene glycol (MEG), climbs sharply.
