QCO may push polyester yarn prices up in India

Quality control orders (QCOs) on the polyester value chain may push up yarn prices in the coming days. However, the sustainability of these higher prices for polyester yarn will be questionable due to reduced demand from downstream industries. Market experts have noted that the implementation of QCO has led to a supply disruption of polyester yarn and its raw materials. Despite this, prices of polyester yarn remained stable on the third day of the new year. Similarly, polyester-cotton yarn and viscose yarn prices have remained stable in Indian markets. 

Demand from the weaving industry was average in Ludhiana. PC yarn and polyester spun yarn prices remained steady. There were expectations of a rise in polyester yarn prices, but support from the downstream industry remained doubtful. A trader from the Ludhiana market told Fibre2Fashion, “The implementation of QCO might restrict imported supplies as many suppliers could not obtain certification from the Bureau of Indian Standards (BIS). However, any price rise may not sustain as the garment industry was underperforming.” 

In Ludhiana, 30 count PC combed yarn (48/52) traded at ₹195-207 per kg (GST inclusive), 30 count PC carded yarn (65/35) was ₹180-190 per kg, and 30 count polyester spun was priced at ₹153-163 per kg (GST inclusive). Recycled polyester fibre (PET bottle fibre) was quoted at ₹72-74 per kg. Recent increases in the prices of virgin polyester fibre and its upstream raw materials pushed up the prices of recycled polyester fibre by ₹2 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Surat market also witnessed a steady trend amid poor demand. Poly spun yarn was sold at previous levels. Traders reported that demand from the downstream industry was not satisfactory. However, QCO may be a supportive factor for polyester yarn. Several foreign suppliers were struggling to get certification from BIS for the export of polyester fibre and yarn to India. 

Nevertheless, polyester spun yarn prices did not see significant movement as 30 count poly spun yarn traded at ₹136-137 per kg (GST extra) and 40 count poly spun yarn at ₹148-152 per kg. Viscose yarn prices remained steady, with 30 viscose compact yarn (local) at ₹197-199 per kg (GST extra) in Surat. 

In the Mumbai market, viscose yarn prices also remained steady. The end of the wedding season dampened viscose yarn demand as it is mostly used in ladies' garments. A trader from Mumbai told Fibre2Fashion, “There was no satisfactory demand for viscose yarn as the wedding season had ended, and ladies' wear demand would remain muted in the coming weeks. The market sentiments were very weak as demand was very slow.” Imported viscose vertex yarn was priced at ₹178-183 per kg, and local ring-spun viscose yarn was quoted at ₹187-190 per kg in this market, as per TexPro. 

North Indian cotton prices have shown a downward trend due to slow demand from spinning mills. Prices eased by ₹25-30 per maund of 37.2 kg in north Indian markets. Traders indicated that mills were holding off on fresh purchases as they did not receive the expected demand from the fabric industry. Spinning mills were also facing payment constraints due to mounting stockpiles. Cotton arrival reduced to 22,000 bales of 170 kg in the region, with state-wise arrival as follows: Punjab 3,000 bales, Haryana 6,000 bales, upper Rajasthan 6,500 bales, and lower Rajasthan 6,500 bales. Prices were ruling in Punjab at ₹5,425-5,475, Haryana ₹5,400-5,500, and upper Rajasthan ₹5,300-5,500 per maund. Bikaner line cotton was sold at ₹5,525-5,600 per maund. Prices were noted at ₹52,000-54,000 per candy of 356 kg in lower Rajasthan. 

ALCHEMPro News Desk (KUL)