Between late February and March 13, 2026, polyester feedstock prices surged by Rs. 23 per kg, from Rs. 80 to Rs. 103, driven by volatile Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) costs linked to crude oil spikes near $118/barrel amid Middle East tensions. This caused polyester prices in Ludhiana to jump from Rs. 115 to Rs. 165-170 per kg by March 31, 2026, a nearly 45% increase. Producers like Reliance Industries raised prices sharply on March 10, 2026, reflecting tight upstream supply and petrochemical volatility.

Medium confidenceCyclical

CURRENT STATE

India's polyester value chain faces significant cost pressure due to a 20-25% rise in raw material expenses, primarily from PTA and MEG price volatility triggered by crude oil fluctuations amid US-Israel-Iran geopolitical tensions. Freight surcharges have increased due to cargo rerouting around the Cape of Good Hope, adding transit delays and costs. Polyester melt prices rose by Rs. 7/kg in early March, transmitting energy-linked input costs downstream, creating uncertainty and sharp price surges across synthetic textiles.

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