Iran Conflict Spurs 30% Polyester Cost Jump, Halves Fabric Output
War in Iran boosted Indian polyester costs by nearly 30%, halving production in major mills supplying Target and risking margin pressure. Meanwhile, WTI crude reclaimed $97.60 and Brent nears $111, sustaining higher transport and energy costs for retail operations.
1. Polyester Cost Surge
The war in Iran has elevated fossil fuel prices, pushing polyester raw material costs up by nearly 30% for Indian and Bangladeshi suppliers serving major retailers including Target.
2. Production Declines in Indian Mills
Key mills in Surat report output dropping from 11,000 to around 4,000 yards per day due to high raw material costs and labor shortages, limiting fabric availability for fast fashion lines.
3. Oil Price Outlook and Retail Impact
WTI crude reclaimed $97.60 and Brent nears $111, signaling sustained high transport and energy expenses that could further erode retail margins and prompt price increases for consumers.