Viscose yarn prices surge amid supply shortages in India

Viscose yarn prices increased further in Mumbai and Surat. Compact viscose yarn rose again by ₹2-3 per kg in Surat, marking a price rise of ₹12-14 per kg over the last couple of weeks. Vortex and ring-spun varieties of viscose yarn also gained ₹2 per kg in the Mumbai market. A trader from Mumbai told Fibre2Fashion, “Supply from domestic and foreign suppliers remained slow. There is a supply mismatch as domestic manufacturers have reduced production. Foreign supplies have also slowed due to an increase in landed costs after the Indian rupee hit a low against the US dollar. Importers and domestic producers will increase supplies, but it will take at least one and a half months.”

In Mumbai, imported 30 count viscose vortex yarn was priced at ₹203-207 (approximately $2.31-2.36) per kg; and local 30 count ring-spun viscose yarn at ₹204-209 (approximately $2.33-2.38) per kg. In Surat, 30 viscose compact yarn (local) was sold at ₹222-224 (approximately $2.53-2.56) per kg (GST extra) and 30 viscose vortex yarn at ₹203-204 (approximately $2.35-2.36) per kg.

The Ludhiana market saw stability in PC and polyester spun yarn prices. The market is still facing payment issues from the downstream industry. According to market sources, buyers are hesitant to purchase yarn as they are facing a liquidity crunch. Payments from large corporate buyers have slowed down. However, there is a seasonal difference, as PC yarn is witnessing slightly better demand. Polyester yarn, on the other hand, is facing weak demand as the winter season comes to an end. Nevertheless, both types of yarn were sold at steady prices in the market.

In Ludhiana, 30 count PC combed yarn (48/52) traded at ₹210-220 (approximately $2.42-2.53) per kg (GST inclusive); 30 count PC carded yarn (65/35) at ₹196-206 (approximately $2.26-2.37) per kg; 20 recycled polyester at ₹113-120 (approximately $1.30-1.38) per kg; 30 count polyester spun at ₹157-164 (approximately $1.81-1.89) per kg (GST inclusive); recycled polyester fibre (PET bottle fibre) at ₹79-82 (approximately $0.91-0.94) per kg and virgin polyester fibre ₹103 (approximately $1.19) per kg.

Surat’s polyester yarn market also witnessed sluggish buying, with prices remaining steady over the past week. According to market sources, there are two reasons for the slow demand. Firstly, the summer season is beginning, and consumers generally avoid polyester garments in warm weather. Secondly, payment constraints have also affected the buying capacity of the consumer industry.

In Surat, 30 count polyester spun yarn was traded at ₹145-146 (approximately $1.67-1.68) per kg (GST extra); 40 count poly spun yarn at ₹158-159 (approximately $1.82-1.83) per kg; 50/48 fully drawn yarn (FDY) at ₹115-116 (approximately $1.32-1.34) per kg; 75/72 FDY at ₹105-106 (approximately $1.21-1.22) per kg; 75 bright yarn at ₹105-106 (approximately $1.21-1.22) per kg.

In north India, cotton prices increased by ₹10 per maund of 37.2 kg. ICE cotton had recorded gains on Tuesday but eased today. Traders stated that mills are purchasing cotton in limited quantities, as large spinning mills have imported significant amounts of cotton from the overseas market. As a result, they have little need for domestic cotton. However, the quality of imported cotton has not met expectations. Therefore, mills will need to mix it with better-quality cotton and will have to source it from the domestic market.

The cotton arrival in north India was 9,100 bales of 170 kg, comprising 600 bales in Punjab, 2,500 bales in Haryana, 3,500 bales in upper Rajasthan, and 2,500 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,565 to ₹5,575 (approximately $64.09-64.20) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,550 to ₹5,570 (approximately $63.92-64.15). In upper Rajasthan, cotton was priced between ₹5,570 and ₹5,590 (approximately $64.15-64.38) per maund. In lower Rajasthan, prices ranged from ₹52,800 to ₹54,200 (approximately $608.07-624.19) per candy of 356 kg, while seed cotton was priced at ₹7,100-7,350 (approximately $81.77-84.65) 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)