The war in the Middle East is threatening Bangladesh’s rapidly expanding exports of man-made fibre (MMF) garments, as surging petroleum prices push up the cost of synthetic raw materials across the textile supply chain.
Industry insiders say higher crude oil prices triggered by the conflict are translating directly into increased costs for fibres such as polyester, nylon and acrylic – key inputs used in the production of MMF apparel.
With shipping through the strategic Strait of Hormuz suspended because of the war, global oil prices have surged by about 40 per cent in recent days, pushing MMF fabric prices in sourcing markets up by around 10–15 per cent.
Because fabrics account for roughly 60 per cent of the cost of a finished garment, any rise in fabric prices is likely to feed quickly into export prices.
As a result of the current crisis, exports of man-made fibre garments, currently standing at around $7 billion annually, could come under pressure, industry insiders say.
Sovon Islam, managing director of Sparrow Group, said his company imports all the fabrics used for its MMF garments.
“The fabrics for purchase orders scheduled for July, August and September have already been booked,” he told TIMES of Bangladesh.
“If petroleum prices rise abnormally, the prices of the booked fabrics may also increase,” he said.
“We are maintaining regular communication with our buyers so that they remain prepared for possible price adjustments,” he added.
About 30 per cent of Sparrow Group’s exports consist of MMF garments, most of which are shipped to the United States, he said.
Key polyester inputs such as purified terephthalic acid and mono-ethylene glycol are both derived from crude oil refining.
When crude prices rise, the cost of these materials increases almost immediately, pushing up prices of polyester staple fibre and filament yarn.
Industry insiders say Bangladesh’s MMF-based garment exports have posted strong growth in recent years, reflecting a gradual shift in the country’s apparel basket away from traditional cotton products.
According to data from the Export Promotion Bureau, exports of MMF garments rose to $3.68 billion during the July–December period of the current fiscal year, up from $3.23 billion in the same period a year earlier – an increase of 14.1 per cent.
The share of MMF items in Bangladesh’s total ready-made garment exports has also increased significantly. These products now account for 19 per cent of overall apparel exports, compared with 11.4 per cent in the full year of 2024.
Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said rising oil prices could push up the cost of MMF fabrics, although the exact extent remains uncertain.
“For now, we have halted imports. Once the ongoing orders are completed, we will discuss the situation with buyers before making further decisions,” he said.
Inamul, who is also the owner of Ananta Garments, said each purchase order at his factory is worth around $5 million to $6 million, with most of the products exported to the US market.
The increase in raw material costs is creating a ripple effect across the entire textile supply chain – from polymer production to yarn spinning, fabric manufacturing and ultimately garment production.
Higher petroleum prices have also pushed up freight and logistics costs, further intensifying pressure on exporters, said Shams Mahmud, managing director of Shasha Denims.
In some cases, the sudden spike in synthetic yarn prices has prompted manufacturers to slow production or temporarily suspend sales while waiting for greater market stability, he added.
Despite these challenges, the strong growth in MMF exports indicates that Bangladesh’s apparel sector is gradually repositioning itself to compete in a global market where demand for synthetic and blended garments continues to rise.
Industry insiders say sustaining this momentum will require greater investment in domestic MMF production, recycling technologies and supply-chain efficiency to help the sector withstand future energy price shocks.
