Picture This: The Problem With Polyester

Naphtha produced in the oil refining process in the Middle East is often shipped for onward processing in more advanced petrochemical plants elsewhere in the world.

Naphtha goes through two streams: steam cracked to create ethylene for onward production in monoethylene glycol (MEG); while aromatic extraction of naphtha produces paraxylene and in turn purified terephthalic acid (PTA). MEG and PTA are then combined to produce polyethylene terephthalate (PET), which is then spun into polyester fibers and fabrics.

The closure of the Strait of Hormuz is disrupting naphtha supplies from the Middle East, creating pricing pressures and potential shortages for human-made fabrics production.

That’s a particular concern for the clothing industry ahead of the critical May-onward production ramp-up for winter garments as well as ongoing production for advanced materials including carbon fibers.

• Polyester is the dominant fiber in many apparel categories, so upstream feedstock constraints can translate into higher costs, margin pressure, and sourcing volatility downstream for brands, retailers, and manufacturers.
• A naphtha shortage in a key exporting region can reprice petrochemical chains globally, increasing the risk of cost-push inflation across synthetic textiles and apparel inputs.
• Initial price shocks — which firms are starting to convert into surcharges for fabric buyers — may evolve into material shortages as at-sea inventories deplete and the Middle East conflict continues.
• The situation highlights a structural vulnerability: apparel “soft” supply chains remain exposed to hard-commodity and refining/petrochemical bottlenecks, making diversification, contracting strategy, and material substitution more strategically important.