The war in Iran and the resulting blockage of the strait of Hormuz continues to wreak havoc on raw materials. Polyester market disruptions are cascading across global supply chains, reshaping both pricing and trade flows. A combination of plant closures in China, reduced operating rates in India and feedstock delays in Turkey is constraining polyester fiber availability, while policy shifts—including new antidumping duties in India—add further complexity. As a result, cotton and viscose demand is rising sharply, signaling a broader rebalancing of fiber consumption patterns across key manufacturing hubs.
Here, HGI shares an excerpt from Wood Mackenzie’s latest synthetic materials report. Learn more about the company’s proprietary data here.
In Asia, cotton, viscose staple and polyester staple fiber (PSF) pricing increased by 16%, 10% and 30% respectively between February and March.
High polyester prices and PSF supply limitations in certain countries are lifting demand for cotton and viscose staple fiber.
The potential for tight polyester fiber supply in May and June is rising.
- In China, paraxylene (PX) and purified terephthalic acid (PTA) plant closures are increasing in number and fiber plants are reducing operating rates.
- In India, operating rates are also sharply down in April, with many spinners turning to cotton as PSF availability diminishes.
- In Turkey, the polyester fiber industry is grappling with delayed monoethylene glycol (MEG) cargos from the U.S. and possible PTA shortages as South Korea has cut contracted volumes.
China
- Polyester fiber: Downstream buyers remain cautious about purchasing due to elevated prices and heightened risks.
- Polyester manufacturers are facing mounting inventory pressure and have also opted to reduce output. Further production cuts are planned for both filament and staple fiber.
- Nylon fiber: Nylon textile filament (NTF) prices rallied in early April, then retreated gradually following lower costs. Some fine-denier products showed better demand for summer. PA66 nylon industrial filament (NIF) prices increased significantly on higher costs.
Asia (excluding China)
- The polyester fiber market in India is in a “Wait-and-Watch” standoff between demand weakness, labor shortages, eroding margins and high production costs.
- Polyester manufacturers are curtailing production to prevent inventory accumulation and are eager to raise prices amid severe margin erosion but face strong resistance from reluctant downstream players.
- Across Asia, multiple countries are cutting their production capacities mainly due to some or all of: raw material shortages, energy crisis and reduced export orders.
- India imposes five-year antidumping duties on nylon filament and spandex from China and Vietnam reshaping Asian trade flows.
- The shortage of naptha in South Korea is having a major impact on the availability of olefin-based products from that source. The offer of bicomponent fibers, including polypropylene is now severely limited.
- Taekwang Industrial Co., Ltd. (Ulsan, South Korea) announced in late March 2026 its withdrawal from the acrylic fiber business, ceasing production in April 2026 and sales in June 2026. Acrylic Staple Fiber (ASF) capacity at Taekwang’s Ulsan plant was 65 kilotonne per annum (ktpa) but operating rates had declined considerably since 2020. With this closure, ASF production in South Korea comes to an end, leaving fewer ASF producers outside China and Aksa’s large plant in Turkey.
Americas
- Fiber markets remain soft in April with cautious, hand-to-mouth buying.
- Though U.S. polyester raw materials are available, prices continue to rise. PTA producers announce surcharges due to energy and transport costs. Fibre prices increase in April and are likely to follow the uptrend in May.
- Nylon polymer prices increase steeply in April with partial pass-through. Fiber increases vary by producer and product grade, with some delaying action.
- Section 301 investigations could impose tariffs by July, while the U.S. launches IEEPA tariff refund platform.
Europe
- Fiber producers announced large fiber price increases in March and April but the full amount may not have passed through. While there is considerable resistance to these higher prices, many producers are unwilling to negotiate since they are subject to considerable raw material price increases.
EMEA
- Polyester feedstock constraints are lifting fiber prices and curtailing overseas supply of certain fibers. Fiber activity slowed in April.
- Demand from the auto sector and more commodity applications is particularly weak while demand from high-tech products appears better.
- Energy cost inflation and feedstock supply tightness weigh on the Turkish fiber production outlook
- Rising feedstock and imported fiber costs are lifting European nylon fiber prices, prompting manufacturers to pursue selective order books.
Cotton & wool
- International cotton prices, the Cotlook A Index, increased sharply this month, touching 90 c/lb, a value last reached in April 2024. Demand generally improved since spinners have been able to pass on the fiber price increase downstream. In India, there is heavy demand for cotton as spinners face high prices for, and tight supply of, domestic polyester fiber. China is importing large volumes of cotton fiber and yarn in response to a surge in spot and futures prices.
- Another month of strong increases in Australian wool auction. The EMI is now 54% up on a year earlier in domestic currency and 73% up in US$ terms.
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