Viscose yarn demand declines in India, export prospects dim

Viscose yarn prices have declined by up to ₹3 per kg due to poor demand, putting pressure on spinning mills to offer lower prices. Trade experts noted that India's viscose yarn faces double pressure from slow export demand and limited domestic consumption. India's prices are ₹4-5 per kg higher than China's, making exports unattractive. Traders reported that domestic spinning mills rely more on domestic consumption. In Mumbai, viscose yarn prices fell by ₹2-3 per kg, and Surat also saw a drop in prices. Polyester-cotton yarn and polyester spun yarn remained stable amid poor demand. Post-Diwali, the weaving industry was partially operational, but increased manufacturing activities are expected soon, potentially boosting demand for PC and polyester spun yarn, said the traders. 

The Ludhiana market continued to experience subdued demand and stable prices for PC yarn. Poly spun yarn also remained steady despite weak demand. A trader from the Ludhiana market told Fibre2Fashion, “The demand for PC and polyester spun yarn did not improve even after 10 days post-Diwali. Manufacturing activities in the weaving and garment industries remained slow. Primarily, small-scale industries were unable to resume production after Diwali due to a lack of workers.” The reduced demand in downstream industries also discouraged higher production levels in the textile industry, according to the trade source. 

In Ludhiana, 30 count PC combed yarn (48/52) traded at ₹190-200 per kg, inclusive of GST; 30 count PC carded yarn (65/35) sold at ₹172-182 per kg; and 30 count poly spun yarn was priced between ₹151-161 per kg, GST included, as per Fibre2Fashion's market insight tool TexPro. Recycled polyester fibre, also known as PET bottle fibre, was quoted at ₹67-70 per kg. 

The Surat market also experienced limited trading activity and stable polyester yarn prices, as manufacturing activities remained slow following Diwali. Traders anticipate improved trading in the coming week when manufacturing activities in the weaving and garment industries are expected to pick up. The 30 count poly spun yarn was traded at ₹130-132 per kg (excluding GST), and 40 count poly spun yarn at ₹145-147 per kg. However, viscose yarn prices decreased by ₹1 per kg due to lower demand. The reduced demand for viscose yarn from downstream industries led to the easing of yarn prices. In Surat, 30 count viscose compact yarn (local) was traded at ₹195-197 per kg, exclusive of GST. 

Viscose yarn prices in the Mumbai market decreased by ₹2-3 per kg due to weak demand from spinning mills. Trade sources indicated that spinning mills in south India were under pressure due to a lack of export demand, compelling them to focus on the domestic market. Industry experts pointed out that Indian viscose yarn faces a price disparity of ₹4-5 per kg compared to Chinese supplies, leading to a decline in export demand. According to TexPro, imported viscose vertex yarn was priced at ₹180-185 per kg, while locally produced ring spun viscose yarn was quoted at ₹188-192 per kg. 

Cotton prices in north India remained weak due to a decline in ICE cotton prices. Spinning mills were cautious about new purchases. This week, cotton prices fell by ₹30-40 per maund (37.2 kg). Traders noted that the steep fall in ICE cotton prices led buyers to anticipate a reduction in local prices. Cotton arrivals in the region totalled 26,000 bales of 170 kg. State-wise, Punjab received 2,500 bales, Haryana 9,000, upper Rajasthan 7,000, and lower Rajasthan 7,500 bales. In Punjab and Haryana, prices ranged from ₹5,420 to ₹5,520 per maund, while in upper Rajasthan, they were between ₹5,325 and ₹5,425 per maund. Bikaner line cotton was sold at ₹150-200 per maund higher than Shri Ganganagar line prices in upper Rajasthan. In lower Rajasthan, prices were noted at ₹53,000-55,000 per candy (356 kg). 

Fibre2Fashion News Desk (KUL)