Iran war hits Asia\'s polyester suppliers to global 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% more for the petroleum-derived feedstocks - purified terephthalic acid (PTA) and monoethylene glycol (MEG) - that it needs to make yarn, as Chinese suppliers raise prices and Middle East supply is disrupted, ‌managing director Madhu Sudhan Bhageria told Reuters. The pain is being felt across the clothing supply chain, which is dominated by Asia. Avichal Arya, CEO of Bindal Silk Mills, which supplies dyed and printed polyester fabrics to retailers including H&M, Zara-owner Inditex, Target, Walmart and IKEA, said the energy crisis had “drastically” pushed up the cost of chemicals and dyes.