Polyester, viscose & PC yarn up in India as upstream market dominates

03 Jul '24

4 min read

Polyester, viscose & PC yarn up in India as upstream market dominates

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Insights

In the past week, polyester, viscose and polyester-cotton yarn prices in India rose sharply by ₹4-8 per kg, despite limited demand from the downstream industry.
This increase is driven by higher raw material costs and increased freight charges.
In Ludhiana and Surat, polyester yarn prices surged, while FDY yarn remained steady due to weak demand.

India’s polyester and viscose yarn prices have witnessed a steep rise in the last week. Polyester-cotton yarn prices also shot up despite limited demand from the downstream industry. Traders said that yarn in these segments increased by around ₹4-8 per kg in the last week, but there was no corresponding rise in demand from the consumer industry. The price rise is driven by a steep hike in raw materials by dominant players. Foreign supply also supported the price rise after a significant increase in container freight charges. Limited imported supply further fuelled yarn prices in these segments. Trade sources indicated that demand for garments typically picks up during these months, but there was no improvement this year.

In the Ludhiana market, PC and polyester yarn prices rose by ₹4-8 per kg. However, the market noticed average demand from fabric manufacturers as the seasonal production of garments did not see any rise yet. A trader from the Ludhiana market told Fibre2Fashion, “Domestic producers of polyester yarn, fibre, and its raw materials like PTA and MEG have increased prices exorbitantly, despite slow demand from the downstream industry. Indian prices of these products are quite higher than international prices.”

In Ludhiana, 30 count PC combed yarn (48/52) traded at ₹218-228 (approximately $2.61-2.73) per kg (GST inclusive); 30 count PC carded yarn (65/35) at ₹205-215 (approximately $2.45-2.57) per kg; 20 recycled polyester fibre yarn at ₹118-128 (approximately $1.41-1.53) per kg; 30 count polyester spun at ₹168-178 (approximately $2.01-2.13) per kg (GST inclusive); and recycled polyester fibre (PET bottle fibre) at ₹81-84 (approximately $0.97-1.01) per kg.

The Surat market also noticed gains in the prices of polyester spun yarn by ₹3-4 per kg after the rise in fibre and its raw material. However, FDY yarn traded steadily due to slow demand. According to market sources, polyester fibre and its raw material producers are increasing prices due to their dominant position. Manufacturers have increased prices of FDY yarn as well, but poor demand from the fabric industry did not let market prices rise.

In Surat, 30 count polyester spun yarn was traded at ₹150-151 (approximately $1.80-1.81) per kg (GST extra); 40 count poly spun yarn at ₹164-165 (approximately $1.96-1.98) per kg; 50/48 fully drawn yarn (FDY) at ₹122-123 (approximately $1.46-1.47) per kg; 75/72 FDY at ₹111-112 (approximately $1.33-1.34) per kg; 75 bright yarn at ₹110-111 (approximately $1.32-1.33) per kg.

Viscose yarn also experienced skyrocketing prices in the last week. According to trade sources, local manufacturers are trying to increase their margins despite poor demand from the garment industry. Prices have risen by ₹8-10 per kg as foreign supply has already reduced due to Quality Control Orders (QCOs). The spike in container freight charges also ignited viscose yarn prices. Traders said that fabric and garment manufacturers are facing the heat of the dominant position of upstream players, and the entire industry will have to suffer in the long run.

In Mumbai, imported 30 count viscose vertex yarn was priced at ₹200-206 (approximately $2.39-2.47) per kg; and local 30 count ring-spun viscose yarn at ₹205-210 (approximately $2.45-2.51) per kg in this market. In Surat, 30 viscose compact yarn (local) was sold at ₹210-212 (approximately $2.51-2.54) per kg (GST extra) and 30 viscose vertex yarn at ₹204-208 (approximately $2.44-2.49) per kg.

North India cotton traded higher by ₹50 per maund of 37.2 kg today. Prices have seen a rise of around one per cent in a couple of days. Although ICE cotton traded almost flat after easing on Tuesday night, mills’ continued buying pushed up cotton prices amid limited arrival. Traders said that most spinning mills, except large players, did not stock cotton for off-arrival months as they did not expect much increase in the prices. They are buying cotton to continue their production.

Today's arrivals were 500 bales of 170 kg in north India. State-wise arrivals were as follows: 400 bales in Haryana, 50 bales in upper Rajasthan, and 50 bales in lower Rajasthan. There was no sizeable arrival in Punjab’s mandis. Cotton prices in Punjab ranged from ₹5,850 to ₹5,875 (approximately $70.03-70.33) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,750 to ₹5,850 (approximately $68.83-70.03). In upper Rajasthan, cotton was priced between ₹5,575 and ₹5,875 (approximately $66.74-70.33) per maund. Bikaner line cotton sold for ₹5,850 to ₹5,975 (approximately $70.03-71.53) per maund. In lower Rajasthan, cotton was priced at ₹54,200 to ₹57,200 (approximately $648.83-684.75) per candy of 356 kg.