10 August 2011
Polyester prices are further sliding in August in India, due to a relatively low level in demand and a continued drop in raw material costs. Certain deniers started however rising on the textured yarn market, our India Correspondent reports.
A new decline in raw material costs have led to a fall in polyester prices in India.
Fiber prices are however expected to remain stable at these levels for some time, as demand has picked up on the market, compared to last month.
PTA further lost 1.88% on India’s domestic market, at Rs 57,300 (US$ 1257.57) per metric ton.
PTA prices fell more than 10% in the last three months.
MEG was down Rs 58,300 (US$ 1279.52), 4% lower than in the last month.
MEG prices rose 6% in the last three months, reflecting tighter supply on the global market.
Raw material costs of polyester makers remain significantly higher than year earlier, having surged 30% for PTA and even 58% for MEG.
Prices of partially oriented yarns (POY) continued falling in August, and were lower Rs 2-4 per kilo compared to prices in July.
In case of fully drawn yarns (FDY), some deniers witnessed a decline in prices, some remained unchanged, and some even rose slightly.
Textured yarn prices were Rs 2-5 lower than in July.
Lower raw material prices are behind the August decline.
Texturisers were not expecting prices to move up this month, as demand had not really picked up.
Fabric movement has not been as expected, either.
Weavers are unwilling to pick up huge stocks, and are only buying as per their immediate needs.
As usual, buyers are wary of buying when prices begin falling.
A number of projects in polyester textured yarns are expected in the next one to two years in the country.
Alok Industries is in the process of setting up a fully automatic draw texturising plant.
Reliance Industries is expanding its capacity in FDY and POY.
The new plant is expected to have a capacity of close to 1,000 tons per day, it is learnt. Rajashree Polyfil and SRF Ltd are putting up capacities for high tenacity yarns.