As of late March 2026, the polyester chain – from the upstream to the downstream industry – is experiencing a severe price escalation, primarily driven by a massive spike in global crude oil prices following the escalation of conflicts in the Middle East (specifically involving strikes in Iran and the closure of the Strait of Hormuz) , the association pointed out.
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“While the prices of raw materials have gone up sharply, customers are not in a position to absorb the full increase in costs. As a result, we are witnessing a ‘wait and watch’ approach, with many spinners and weavers holding on to inventories,” Toshniwal said.
Additionally, the steep increase in freight costs including War Risk Surcharge charged by the Shipping Companies, increase in insurance premiums and subdued demand in major markets due to inflationary pressures created by rising oil prices and cautious consumer spending have aggravated the problems faced by the exporters.
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“Even if the situation improves in the new future, it will take considerable time for the prices of manmade fibre raw-materials to stabilize and come back to the pre- February 28 level,” he said.