Polyester, PC yarn prices down in India; Import from China worrisome

28 Sep '22

3 min read

Pic: Shutterstock.com

Polyester-cotton (PC), poly spun and recycled polyester yarn further dropped by ₹5-6 per kg today. Traders said that huge imports of Chinese polyester yarn, poor local demand and bearish cotton yarn are the main causes for concern. The imports are dampening market sentiments as domestic spinning mills are already running at 50-70 per cent capacity.

According to trade sources, huge amount of polyester yarn is being imported from China and there is no improvement in buying from domestic and export markets. Cheaper cotton and cotton yarn added to the problems of the polyester value chain. “Domestic mills are running at a mere 50-70 per cent capacity due to lower demand. Chinese supply is eating into the domestic market demand,” a Ludhiana-based trader told Fibre2Fashion.

A slightly improved demand was seen towards the end of the previous week as Vardhman, and some other companies had secured sizeable orders of polyester yarn. But the market again turned bearish as buying reduced. Sources said that the demand had improved because the market pipeline had dried up, but there was no improvement in consumption.

According to trade sources, polyester-cotton, poly spun, and recycled yarn prices continued the downward trend in Ludhiana. PC, poly spun and recycled polyester yarn declined by ₹5-6 per kg. 30 count PC combed yarn (48/52) was sold at ₹230-240 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 30 count PC carded yarn (65/35) was priced at ₹200-205 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at ₹160-170 per kg. 30 count poly spun yarn was sold at ₹152-162 per kg. Recycled polyester fibre (PET bottle fibre) was at ₹88-90 per kg.

Reliance Industries Limited had earlier decreased the prices of purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT for the current week. On Friday, RIL had fixed the prices as: PTA ₹84.10 per kg (-1.50), MEG ₹56.60 per kg (-0.80) and MELT at ₹91.57 (-1.56) per kg. PSF was priced at ₹110 per kg for the current fortnight.

North Indian states recorded a steep fall in cotton prices as arrival increased. Spinners’ buying remained weak. According to traders, cotton arrival increased from 6,500 bales of 170 kg to 13,000 bales in north Indian region. Cotton prices decreased by ₹300-350 per maund of 37.2 kg. New cotton was traded at ₹7,150-7,200 per maund for ready delivery in Haryana, Punjab and Rajasthan. October delivery deals are at ₹6,650-6,700 per maund.

Fibre2Fashion News Desk (KUL)

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