According to trade sources, many mills have reduced production of yarn, but demand was still poor. Last week’s increase in prices also discouraged buying of PC and poly spun yarn. A Ludhiana based trader Ashok Singhal told Fibre2Fashion, “Weaving industry was not in hurry for buying. It shows that they have sufficient stock to meet the limited demand from garment industry.” However, recycled polyester fibre was in a better position as it was attractive economical option for the industry.
Polyester-cotton and poly spun yarn buying slowed down in north India due to higher prices and limited lifting of fabrics. The non-cotton yarn gained ₹5-8 per kg last week after increase in prices of cotton and cotton yarn. However, recycled polyester fibre found support from better demand as mills focused on cheaper raw material to control production cost.
In Ludhiana market, polyester-cotton and poly spun yarn prices were noted at higher from previous week. But the demand weakened since the very beginning of this week. PC yarn prices increased by ₹5-10 per kg since mid of last week. Last week, higher cotton prices pushed up cotton yarn and PC yarn. However, demand for PC and poly spun yarn weakened as weaving industry reduced buying after slow demand of fabric by garment industry. Recycled polyester fibre (high tenacity recycled fibre) gained ₹2 per kg as weaving industry turned to cheaper options to control production cost. 30 count PC combed yarn (48/52) was sold at ₹265-280 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 30 count PC carded yarn (65/35) was priced at ₹230-240 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at ₹190-200 per kg. 30 count poly spun yarn was sold at ₹172-180 per kg. High tenacity recycled fibre steadied at ₹89-94 per kg.
Reliance Industries Limited had decreased the prices of purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT. Last Friday, RIL fixed prices of raw material as: PTA ₹85.80 (-1.20) per kg, MEG ₹52.30 (-1.50) per kg and MELT at ₹91.57 (-1.54) per kg. But the price of PSF remained steady at ₹116 per kg.
Meanwhile, cotton prices slipped in north India as mills have reduced buying after production cut. Spinning mills are reducing or halting production due to poor demand from weaving industry and last week’s increase in cotton prices. According to traders, there was negligible arrival of cotton but demand too remained weak. Therefore, cotton prices dropped by ₹400-500 per maund of 37.2 kg. Cotton was sold at ₹10,000-10,100 per maund in Punjab, ₹9,500-9,800 per maund in Haryana and ₹10,000 -10,100 per maund in upper Rajasthan. Cotton was sold at ₹94,000-97,000 per candy of 356 kg in lower Rajasthan.
Fibre2Fashion News Desk (KUL)