Conflict in the Persian Gulf: Price increases for carpet raw materials

The current political instability in the Persian Gulf and the resulting effective closure of the Strait of Hormuz are burdening the carpet industry with drastically rising raw material costs. The production of machine-woven rugs is particularly affected, as prices for petroleum-based synthetic fibres, such as polypropylene and polyester, have surged. While polyester recorded an increase of 30%, the price of polypropylene (as of mid-March) has risen by as much as 70% since the beginning of the year. In parallel, costs for jute, which is used in the backing of the rugs, are also climbing. The situation is further exacerbated by a noticeable jump in logistics and freight costs.

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