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Indian polyester yarn prices fall due to oversupply, sluggish buying

Published: 2022-07-07
The prices of polyester-cotton yarn and polyester yarn dropped further today in Indian markets because of oversupply and sluggish demand. Polyester and blended yarn prices slumped ₹5-15 per kg in Ludhiana. Prices of PTA, monoethylene glycol (MEG) and polyester staple fibre (PSF) came down after continued pressure on crude oil, according to traders.

A Ludhiana based trader told Fibre2Fashion, “There was glut situation of blended and polyester yarn supplies because many spinners have shifted to non-cotton operation. Excessive supply amid weak demand caused for steep fall in prices. Demand remained very weak as buyers do not want to take risk in current volatile market.” Uncertain market conditions and fall in raw materials led to ease in prices of polyester and blended yarn, which fell by ₹5-15 per kg in last couple of days.

Polyester value chain has recorded price fall due to decrease in crude oil prices. WTI crude is hovering at around $100 per barrel. PTA and MEG came down further after decline in crude oil prices and down trend in China. PSF price came down to ₹127 from ₹131 per kg of last week.

In Ludhiana market, polyester-cotton blended yarn and virgin and recycled polyester yarn prices dropped ₹5-15 per kg. 30 count PC combed yarn (48/52) was sold at ₹270-285 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 30 count PC carded yarn (65/35) was priced at ₹240-250 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at ₹190-200 per kg. 30 count poly spun yarn was sold at ₹190-200 and 30 count recycled poly spun yarn at ₹180-190 per kg. High tenacity recycled fibre was priced at ₹95 per kg.

The price of PSF was lowered by ₹4 to ₹127 per kg by Reliance Industries Limited (RIL). The company has fixed prices of raw material as: PTA ₹95.60 (-1.20) per kg, MEG ₹56.80 (-1.70) per kg and MELT at ₹103.14 per kg, as per TexPro.

Meanwhile, cotton prices decreased by ₹200-400 per maund of 37.2 kg in north India due to fear of more imports after the government extended duty-free import till October 2022. According to traders, spinning mills are reluctant for fresh buying in bearish market. Cotton was sold at ₹9,100-9,300 per maund in Bathinda, ₹8,300-8,600 per maund in Hissar and ₹9,100-9,300 per maund in Sriganganagar.

Fibre2Fashion News Desk (KUL)