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Rising dollar affects viscose yarn imports, seasonal demand persists

15 Jan '25
4 min read
Rising dollar affects viscose yarn imports, seasonal demand persists
Pic: Adobe Stock

Insights

  • India's yarn market is witnessing varied trends as seasonal demand influences local prices of viscose, polyester and polyester-cotton yarns.
  • Although domestic demand is robust, a strengthening dollar is hampering viscose yarn imports, leading to price fluctuations.
  • Prices have remained stable or increased in Surat and Mumbai.
  • The market is also dealing with tight payment conditions.
India’s viscose, polyester, and polyester-cotton yarn prices have shown mixed trends. However, yarns in these segments are experiencing better demand due to seasonal buying and limited imports caused by a stronger dollar. Polyester-cotton and polyester yarn prices remained stable, but viscose yarn prices improved in Surat due to high demand and tight supply. Vegetable yarn prices stayed steady in Mumbai. Market sources noted that seasonal demand for these yarn types has increased. However, a stronger dollar against the Indian rupee has discouraged viscose yarn imports despite better seasonal demand. A continuing strong dollar may drive viscose yarn prices higher if the trend in the currency market persists.

Ludhiana observed stability in polyester-cotton and polyester yarn prices. However, both yarn segments saw higher demand due to seasonal buying. A trader from the Ludhiana market told Fibre2Fashion, “The fabric industry is looking to purchase PC and polyester yarn to meet fabric demand in the coming weeks. However, local yarn is facing stiff competition from large imports. The Indian textile industry is facing heavy fabric imports from China and other neighbouring countries.”

In Ludhiana, 30 count PC combed yarn (48/52) traded at ₹210-220 (approximately $2.45-2.56) per kg (GST inclusive); 30 count PC carded yarn (65/35) at ₹196-206 (approximately $2.28-2.40) per kg; 20 recycled polyester at ₹114-125 (approximately $1.33-1.46) per kg; 30 count polyester spun at ₹158-165 (approximately $1.84-1.92) per kg (GST inclusive); recycled polyester fibre (PET bottle fibre) at ₹79-82 (approximately $0.92-0.95) per kg; and virgin polyester fibre at ₹101.50 (approximately $1.18) per kg.

Surat’s polyester yarn market also observed steadiness in specialised polyester yarn such as fully drawn yarn (FDY). According to market sources, seasonal demand is picking up slowly, but the market is facing tight payment conditions, which are curtailing the buying capacity of the downstream industry. Demand may continue to see an upward trend if payment conditions improve in the coming weeks.

In Surat, 30 count polyester spun yarn was traded at ₹146-147 (approximately $1.70-1.71) per kg (GST extra); 40 count poly spun yarn at ₹159-160 (approximately $1.85-1.86) per kg; 50/48 fully drawn yarn (FDY) at ₹115-116 (approximately $1.34-1.35) per kg; 75/72 FDY at ₹105-106 (approximately $1.22-1.23) per kg; and 75 bright yarn at ₹105-106 (approximately $1.22-1.23) per kg.

Viscose yarn prices remained stable in Mumbai but increased in Surat. Viscose yarn demand is slightly better due to seasonal demand, but availability is limited. Its prices increased by ₹1 per kg in the Surat market.

Trade sources said that the rising US dollar against the Indian rupee is a cause for concern for the viscose value chain. A stronger dollar makes viscose yarn imports costlier. While seasonal demand is currently increasing, viscose yarn prices may further rise if the US dollar continues to strengthen in the coming days.

In Mumbai, imported 30 count viscose vortex yarn was priced at ₹197-203 (approximately $2.29-2.36) per kg; and local 30 count ring-spun viscose yarn at ₹201-206 (approximately $2.34-2.40) per kg.

In Surat, 30 viscose compact yarn (local) was sold at ₹210-212 (approximately $2.43-2.46) per kg (GST extra) and 30 viscose vortex yarn at ₹200-201 (approximately $2.32-2.33) per kg.

In north India, cotton prices further inched up due to rising prices of cotton seed. This also supported seed cotton (Kapas) prices. Cotton prices rose by ₹10 per maund of 37.2 kg. Traders said that spinning mills' demand is not very encouraging as large size mills are importing cheap cotton from other countries. Local demand from smaller players is limited, but higher prices of cotton seed are supporting seed cotton prices. Cotton arrival was almost stable in north Indian states.

North India’s cotton arrival totalled 11,000 bales of 170 kg, comprising 500 bales in Punjab, 3,000 bales in Haryana, 4,000 bales in upper Rajasthan, and 3,500 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,580 to ₹5,590 (approximately $64.32-64.43) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,570 to ₹5,590 (approximately $64.20-64.43). In upper Rajasthan, cotton was priced between ₹5,580-₹5,600 (approximately $64.32-64.55) per maund. In lower Rajasthan, it was priced at ₹53,300 to ₹54,400 (approximately $614.33-627.03) per candy of 356 kg. Seed cotton was priced between ₹7,200-7,650 (approximately $82.68-87.34) per quintal of 100 kg.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

Fibre2Fashion News Desk (KUL)

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