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Viscose yarn prices gain in Indian markets amid demand, polyester ease

30 Oct '24
5 min read
Viscose yarn prices gain in Indian markets amid demand, polyester ease
Pic: Adobe Stock

Insights

  • Viscose yarn prices in Mumbai and Surat rose ₹2-5 per kg due to strong festival demand, supply mismatch, and increased freight costs, which surged by around 200 per cent.
  • Polyester yarn saw mixed trends; prices dipped in Ludhiana due to low demand and cheaper crude, while Surat remained stable.
  • Cotton prices in North India eased slightly as mills delayed buying, awaiting post-Diwali demand.
Viscose yarn prices gained by ₹2-5 per kg in last one week in Mumbai and Surat markets. Wedding and festival season’s buying, supply mismatch and increasing shipping freight charges spurted the prices. Traders expected that its demand may remain robust ever after Diwali.

However, polyester yarn and fibre were traded lower by ₹1-2 per kg in Ludhiana market due to lower demand and cheaper crude oil prices. Falling crude oil prices in global markets reduced cost of production of polyester fibre. But polyester yarn prices steadied in Surat market due to lower buying and thin trade. Ludhiana market also noted stability in polyester-cotton yarn, but it may see higher demand after Diwali.

Ludhiana market noticed mixed trend in polyester-cotton and polyester spun yarn. The prices eased down by ₹1-2 per kg for polyester yarn and recycled polyester fibre. However, PC yarn did not see any price rise. A trader from Ludhiana market told Fibre2Fashion, “The market is still facing tight liquidity which is hurting buying capacity of potential buyers. Slow demand and cheaper crude oil prices caused for losses in polyester spun yarn, recycled PSF yarn and recycled PSF in the market. But PC yarn steadied anticipating higher demand after Diwali. PC yarn remains in demand in all weather.”

In Ludhiana, 30 count PC combed yarn (48/52) was traded at ₹209-219 (approximately $2.49-2.61) per kg (GST inclusive); 30 count PC carded yarn (65/35) at ₹196-206 (approximately $2.33-2.45) per kg; 20 recycled polyester fibre at ₹111-121 (approximately $1.32-1.44) per kg; 30 count polyester spun at ₹160-168 (approximately $1.91-2.00) per kg (GST inclusive); and recycled polyester fibre (PET bottle fibre) at ₹76-79 (approximately $0.91-0.94) per kg.

Surat’s polyester yarn market remained stable amid limited demand and thin trade. The market witnessed limited trade of polyester yarn as Diwali festival has neared. According to market sources, polyester garments are not preferred in summer season. Therefore, production activities of polyester fabric slowed down. Festival season was also a cause for lower demand of polyester yarn. Recent fall in global crude oil prices also discouraged buyers from downstream industry.  

In the Surat market, 30 count polyester spun yarn was traded at ₹147-148 (approximately $1.75-1.76) per kg (GST extra); 40 count poly spun yarn at ₹160-161 (approximately $1.91-1.92) per kg; 50/48 fully drawn yarn (FDY) ₹114-115 (approximately $1.36-1.37) per kg; 75/72 FDY ₹106-107 (approximately $1.26-1.27) per kg; 75 bright yarn ₹105-106 (approximately $1.25-1.26) per kg.

Viscose yarn prices witnessed gains for most of the varieties and counts as festival and wedding season’s demand was good. Supply mismatch and higher shipping freight charges also fuelled viscose yarn prices. viscose yarn gained by ₹2-5 per kg in the last one week. A trader from Mumbai said that the market noticed good demand of viscose yarn after higher lifting of viscose fabric by garment industry. The prices found support from rising freight charges also. Higher freight charges increased landed cost of imported viscose yarn. There was an estimation that freight charges increased by around 200 per cent. As a result, the landed cost of imported viscose yarn increased by around ₹6-8 per kg.

In Mumbai, imported 30 count viscose vortex yarn was priced at ₹191-197 (approximately $2.26-2.33) per kg; and local 30 count ring-spun viscose yarn at ₹197-202 (approximately $2.32-2.38) per kg. In Surat, 30 viscose compact yarn (local) was sold at ₹210-212 (approximately $2.41-2.44) per kg (GST extra) and 30 viscose vortex yarn at ₹203-204 (approximately $2.37-2.40) per kg.

In North India, cotton prices eased by ₹10-20 per maund of 37.2 kg as demand slowed down ahead of Diwali. Cotton arrival also slowed down as farmers were busy in the festival. Mandis will remain closed from tomorrow for couple of days. Trade sources said that mills were not keen to buy cotton ahead of the festival. They will ramp up their buying after Diwali.

North India’s cotton arrival slowed down to 12,700 bales of 170 kg, comprising 700 bales in Punjab, 4,000 bales in Haryana, 4,000 bales in upper Rajasthan and 4,000 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,680 to ₹5,700 (approximately $69.28-69.34) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,665 to ₹5,675 (approximately $68.99-69.11). In upper Rajasthan, cotton was priced between ₹5,670- ₹5,690 (approximately $68.99-69.23) per maund. In lower Rajasthan, it was priced at ₹55,000 to ₹56,000 (approximately $656.57-668.46) per candy of 356 kg. While seed cotton was priced as ₹7,700-7,900 (approximately $92.78-96.34) per quintal of 100 kg.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

ALCHEMPro News Desk (KUL)

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