|
War becomes nightmare for Indian textiles, polyester badly hit

09 Mar '26

4 min read

War becomes nightmare for Indian textiles, polyester badly hit

Pic: Shutterstock.com

Insights

Escalation in crude oil prices triggered by the US-Israel-Iran conflict has rapidly transmitted through the polyester value chain, pushing feedstock and fibre prices up within days. Rising PTA and MEG costs are squeezing margins for textile manufacturers, particularly MSMEs, forcing production cuts and exposing the sector's vulnerability to geopolitical shocks and petrochemical price volatility.

Crude oil markets reacted immediately to the geopolitical tensions. Brent crude surged from $**.** per barrel on February ** to $***.** per barrel during the conflict, marking an increase of nearly ** per cent within about ten days. Since polyester feedstocks are derived from petrochemicals linked to crude oil, the surge quickly transmitted through the polyester value chain.

Indian polyester producers responded with multiple price revisions during the period. Polyester staple fibre (PSF) prices increased substantially in early March. On February **, *.* denier PSF was priced at &#****;***.** per kg, *.* denier at &#****;***.** per kg and *.* denier at &#****;***.** per kg. Prices rose to &#****;***.**, &#****;***.**, and &#****;***.** per kg respectively with effect from March *. A further revision on March *, pushed prices to &#****;***.** per kg for *.* denier, &#****;***.** per kg for *.* denier and &#****;***.** per kg for *.* denier. This represents an overall increase of around **-** per cent compared with February ** levels, excluding the additional * per cent GST.