Indian polyester & PC yarn prices slump amid weak demand

The Ludhiana market has experienced a decline in PC and polyester spun yarn prices. Yarn prices in this segment fell by ₹2-3 per kilogram, attributable to lower raw material costs and a sluggish demand, leading to a drop in yarn prices. A trader from the Ludhiana market told Fibre2Fashion, “The weaving industry has slowed production as they do not foresee significant demand from the garment sector. The anticipation of further price reductions in PSF has also dampened buyer enthusiasm. However, Reliance may not cut PSF prices further for the next fortnight.” 

Specifically, the price of 30-count poly spun yarn has decreased to ₹147-156 per kilogram (including GST) in the Ludhiana market. The 30-count PC combed yarn (48/52) has also seen a price reduction, now trading at ₹205-215 per kilogram (including GST) in Ludhiana. Meanwhile, the price of 30-count PC carded yarn (65/35) has remained stable at ₹195-205 per kilogram. The 30-count PC (recycled fibre) yarn traded at ₹107-110 per kilogram. The recycled polyester fibre (made from PET bottles) was priced at ₹70-72 per kilogram, as per Fibre2Fashion's market insight tool TexPro. 

The price of poly spun yarn also decreased by ₹2-3 per kilogram in the Surat market. Trade sources indicate that buyers have been very cautious about entering new deals. They are hesitant to use their liquidity to purchase yarn in large quantities. The 30-count poly spun yarn traded at ₹135-136 per kilogram (excluding GST), while the 40-count poly spun yarn was priced at ₹151-152 per kilogram. 

In Mumbai, the price of 30-count local viscose yarn has remained stable, trading at ₹185-195 per kilogram (excluding GST). Trade sources report a slow demand in the viscose yarn market as well. However, the introduction of BIS certification for viscose fibre has led to price stability. This development may result in slower importation of PSF fibre in the upcoming months. 

Earlier, Reliance Industries Limited (RIL) had set prices for purified terephthalic acid (PTA) at ₹81.30 per kilogram (a decrease of ₹2.10), monoethylene glycol (MEG) at ₹52.00 per kilogram (unchanged), and MELT at ₹87.60 per kilogram (a decrease of ₹1.81). The new pricing for polyester raw materials took effect from the previous Saturday. At the start of the current fortnight, the company had reduced the price of polyester staple fibre (PSF) by ₹6, bringing it down to ₹104 per kilogram. RIL had decreased the PSF prices twice in the past week. 

The price of north Indian cotton has dropped due to weak demand from the spinning industry. Concerns stem from weakening sentiments in the textile value chain. The slow export and local demand for yarn have adversely affected the cotton market conditions. Prices have decreased by ₹150-200 per maund (approximately 37.2 kg) in the past few days. Cotton arrivals were recorded at 5,000 bales of 170 kg each in north India. Cotton was traded at ₹5,575-5,675 per maund in Punjab, ₹5,650-5,750 per maund in Haryana, and ₹5,975-6,100 per maund in upper Rajasthan and at ₹55,200-57,000 per candy (approximately 356 kg) in lower Rajasthan. 

ALCHEMPro News Desk (KUL)