Better demand, rise in raw material price drive poly yarn in India

Polyester yarn prices improved in Indian markets today due to better buying amid tight supply and rise in prices of raw material. Last Friday, Reliance Industries Limited (RIL), India’s largest player in polyester value chain, has increased prices of PTA, monoethylene glycol (MEG) and MELT. However, the prices of polyester-cotton yarn remained stable.

According to trade sources, better buying in yarn market drove polyester fibre and yarn prices upwards. There were better sentiments in market after more export orders were received by the industry. Ashok Singhal, a trader from Ludhiana market, told Fibre2Fashion, “Poly spun yarn gained in market as mills increased prices after rise in the price of raw material. Tight supply also improved market sentiments.” In Ludhiana, 30 count poly spun yarn was sold higher by ₹3-5 per kg at ₹153-160 per kg. The price of recycled polyester fibre (PET bottle fibre) was noted at ₹80-82 per kg. However, prices of polyester-cotton (PC) yarn remained stable. 30 count PC combed yarn (48/52) was sold at ₹210-215 per kg (GST inclusive), while 30 count PC carded yarn (65/35) was priced at ₹180-185 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In Surat market, the price of poly spun yarn increased by ₹4-5 per kg due to better buying. A trader from Surat market said that there was better buying in cotton yarn and polyester yarn after new export orders, but viscose was still bearish. Viscose yarn (30 count) was sold lower at ₹200-205 per kg. 30 counts poly spun yarn was traded at ₹137-138 per kg (GST extra) and 40 counts poly spun yarn at ₹153-155 per kg. The prices gained ₹3-4 per kg in last few days amid better demand and increase in raw material prices.

For the current week, RIL had fixed raw material prices as: PTA ₹79.70 per kg (+1.10), MEG ₹55.90 per kg (+0.40) and MELT ₹87.55 (₹+1.09) per kg. RIL had also increased prices of PSF by ₹4 to ₹103 per kg for the current fortnight.

Meanwhile, prices of cotton also increased in north India due to better demand. The prices increased by ₹25-50 per maund of 37.2 kg. According to local traders, cotton arrival did not improve, and it was estimated at 11,000 bales of 170 kg. The natural fibre was traded at ₹6,150-6,300 in Punjab, ₹6,150-6,300 in Haryana and ₹6,350-6,425 per maund in upper Rajasthan. Cotton was sold at ₹60,500-62,000 per candy of 356 kg in lower Rajasthan.

Fibre2Fashion News Desk (KUL)

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