The industry is dealing with a costlier cotton which is likely to come down, according to trade sources. Spinning mills are facing difficulties as they are unable to raise yarn prices due to weak demand, while cheaper polyester fibre is providing the much-needed relief to the industry. “The businesses in textile value chain are getting better margin in polyester. Polyester and PC yarn traders are getting more than double margin in comparison of cotton yarn,” a Mumbai-based trader told Fibre2Fashion. PSF and recycled polyester prices have been falling due to the international dynamics.
India’s yarn is witnessing a structural shift due to a decline in polyester prices. Poly spun and polyester-cotton yarn prices fell by ₹2-5 per kg in Ludhiana today. Sources said the decline in polyester staple fibre (PSF) and recycled polyester fibre has provided relief to the entire value chain. The industry is switching to polyester due to better margins.
Poly spun and PC yarn eased by ₹2-5 per kg in Ludhiana and Surat market also noted bearish tone, according to trade sources. 30 count PC combed yarn (48/52) was sold at ₹205-215 per kg (GST inclusive) in Ludhiana. 30 count PC carded yarn (65/35) was priced at ₹175-180 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at ₹150-155 per kg. 30 count poly spun yarn was sold at ₹151-157 per kg. Recycled polyester fibre (PET bottle fibre) was at ₹77-89 per kg, according to Fibre2Fashion’s market insight tool TexPro.
Recycled polyester fibre fell by ₹2-4 per kg after Reliance Industries Limited (RIL) cut the prices of virgin polyester staple fibre.
In Surat, Gujarat, 30 count poly spun yarn was traded at ₹135-136 per kg (GST extra) and 40 count poly spun yarn at ₹144-145 per kg.
RIL has decreased the prices of purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT for the current week. On Friday, RIL fixed the prices as PTA at ₹78.40 per kg (-1.40), MEG at ₹52.20 per kg (-1.00) and MELT at ₹85.26 (₹-1.54) per kg. Earlier, RIL has reduced the prices of PSF by ₹3 to ₹99 per kg for coming fortnight.
North Indian cotton prices increased at cotton future supported spot trade. According to local traders, the arrival is not going to improve anytime soon. There may be indications of low yield and decline in the total production in north India which will not let arrival to rise. Overall cotton arrival was at 22,000 bales of 170 kg. The prices increased by ₹50-150 per maund of 37.2 kg in the last few days. Earlier, the prices had witnessed a decline of ₹250-300 per maund due to high arrival. The natural fibre was traded at ₹6,750-6,850 in Punjab, ₹6,600-6,700 in Haryana and ₹6,850-6,900 per maund in upper Rajasthan, and at ₹65,500-67,500 per candy of 356 kg in lower Rajasthan.
Fibre2Fashion News Desk (KUL)