Why textile buyers need to watch the feedstock market
Renewed US–Iran tensions have created fresh cost pressure across the synthetic textile chain. Between July ** and July **, ****, CFR Far East Asia naphtha prices surged **.* per cent from $*.*** per kg to $*.*** per kg, while CFR Southeast Asia monoethylene glycol (MEG) climbed **.* per cent from $*** per kg to $*** per kg. In contrast, China FOB **s polyester yarn increased only *.* per cent, from $*.*** per kg to $*.*** per kg. The widening gap indicates that upstream inflation is moving much faster than textile prices, leaving spinners and fibre producers exposed to margin pressure amid cautious apparel demand.
Polyester yarn faces limited cost pass-through
Between July ** and July **, China FOB **s *** per cent polyester yarn prices rose from $*.*** per kg to $*.*** per kg, marking a *.* per cent increase. The modest rise, compared with the double-digit increases in several upstream feedstocks, suggests that spinners are absorbing a significant share of the cost inflation rather than passing it fully to buyers. Cautious textile purchasing and weak apparel demand are limiting pricing power, forcing producers to balance higher replacement costs against the risk of losing orders. If raw-material prices remain elevated, margins could come under further pressure as lower-cost inventories are replaced with more expensive material.
