Crude oil surge drives PC, poly spun yarn prices up in India

The Ludhiana market witnessed a price increase of ₹5 per kg in PC yarn. Additionally, the cost of poly spun yarn rose by ₹2-3 per kg over the past week. While demand from the downstream industry improved slightly, the primary drivers of this price surge were costlier raw materials and a spike in import costs. 

Reliance Industries Limited also heightened the prices of virgin PSF and its raw materials by over ₹3 per kg. Commenting on the situation, Ashok Singhal, a trader from the Ludhiana market, told Fibre2Fashion, “Crude oil has reached $94 per barrel, which will escalate the raw material costs of polyester fibre. A stronger US dollar against the rupee has further increased the import cost of polyester raw materials.” 

PC yarn and Poly spun yarn was sold at higher prices in the Ludhiana market. The 30 count PC combed yarn (48/52) traded at ₹198-208 per kg (GST inclusive); 30 count PC carded yarn (65/35) was sold at ₹185-195 per kg; and 30 count poly spun was priced at ₹158-168 per kg (GST inclusive) in Ludhiana, according to Fibre2Fashion’s market insight tool TexPro. Recycled polyester fibre (PET bottle fibre) was quoted at ₹74-77 per kg. 

The Surat market noted an upward trend in polyester spun yarn, but viscose yarn was traded lower due to poor demand. Polyester spun yarn increased by ₹2-3 per kg, while viscose yarn fell by ₹4 per kg. The 30 count poly spun yarn was traded at ₹140-141 per kg (GST extra); 40 count poly spun yarn at ₹155-156 per kg; and 30 viscose compact yarn (local) was traded at ₹206-207 per kg (GST extra) in Surat. 

However, the Mumbai market reported stability in viscose yarn prices despite poor demand. Trade sources indicated that importers had purchased substantial quantities of viscose yarn in anticipation of increased demand during the festival season. However, the actual demand did not meet expectations. Now they are attempting to clear their imported stocks. Imported viscose vertex yarn was priced at ₹187-192 per kg and local ring spun viscose yarn was quoted at ₹202-204 per kg, as per TexPro. 

Earlier, RIL set the prices of various materials as PTA at ₹90.20 per kg, reflecting an increase of ₹2.10; MEG at ₹54.40 per kg, an increase of ₹2.70; and MELT at ₹96.07 per kg, up by ₹2.73. These new pricing standards for polyester raw materials became effective from last Saturday. For this fortnight, RIL has further raised the PSF prices by ₹3, setting it at ₹111 per kg. This follows a previous increase where prices were hiked by ₹1 per kg. 

In north India, cotton prices decreased by ₹50 per maund (37.2 kg) amid a downward trend noted in both ICE cotton and domestic cotton futures. Traders pointed out that the cotton market was largely swayed by global market directions. The cloudy and rainy weather was the cause of reduced arrivals and limited trading in the natural fibre. Arrivals dwindled to 7,800 bales of 170 kg in the region. 

The state-wise breakdown of the arrivals was as follows: Haryana reported 4,500 bales, Punjab 800 bales, upper Rajasthan 1,000 bales, and lower Rajasthan 1,500 bales. Across most of north India, cotton was priced between ₹6,370 and ₹6,390 per maund of 37.2 kg, with the exception of upper Rajasthan, where it traded slightly lower, between ₹6,360 and ₹6,370 per maund. 

ALCHEMPro News Desk (KUL)