The price of texturised polyester yarn, the benchmark yarn variety, has fallen from Rs 120 a kg in March to Rs 105 a kg, owing to the drop in the prices of PX, PTA and MEG
With the prices of raw materials such as paraxylene (PX), PTA and MEG dropping over two months, polyester yarn makers are heaving a sigh of relief.
PX prices have fallen 11 per cent-- from $1,611 a million tonne (mt) on March 1 to $1,432.5 a mt. During the same period, PTA and MEG prices have dropped from $1,150 a mt to $1,051 a mt and $1,046 a mt to $997 a mt, respectively. The fall in PX prices was primarily due to the fall in crude oil prices.
"Currently, prices have stabilised. From here, the situation would be better. Last year, we utilised about 65 per cent of our total capacity; this year, we hope to utilise more than 80 per cent of capacity, as there is a revival in demand," said O P Lohia, chairman and managing director, Indo Rama Synthetics. For the quarter ended March, the company had recorded a net loss of Rs 38 crore, owing to high raw material prices.
The price of texturised polyester yarn, the benchmark yarn variety, has fallen from Rs 120 a kg in March to Rs 105 a kg, owing to the drop in the prices of PX, PTA and MEG. "Paraxylene prices have fallen in the last two months. This has led to a fall in PTA and MEG prices as well. This has helped us reduce our raw material costs and pass it to our users," said Jyotiprasad Chiripal, director of Chiripal Industries, which manufactures 200 tonnes of polyester yarn a day at its Ahmedabad plant.
According to a recent press release from Indo Rama Synthetics, earlier, PTA and MEG prices were high because of the tight PX environment. Also, as the high prices weren't passed to customer, the margins were low.
The domestic polyester yarn industry is facing tough competition from China. "The industry is facing demand issues, as China's synthetic yarn prices are lower than India's. Due to this, the Indian synthetic yarn industry is suffering," said Jayesh Pathak, president of the Bombay Yarn Merchants Association.
Polyester yarn makers are also struggling with over-capacity. "This is because of reduced demand in polyester products -right from fabric to raw materials," said Chiripal. Also, cotton prices have been low, while supply has been high. Due to this, demand for cotton has been higher than demand for polyester.
Source: Business Standard .
Middle East News
- Media Information: Autefa Solutions announces new agency for the Indian market
- Denimsandjeans India to discuss trend of unisex denim
- RBI keeps repo rate unchanged at 6%
- Maharashtra cabinet approves textile policy for 2018-23
- UAE has the lowest VAT regionally and globally
- Costs rise at sharpest pace for UAE’s private sector businesses
- Budget 2018-19: Customs duty on silk fabric hiked to 20%
- Reduction in tax for MSMEs to benefit TN textile firms
- Budget: TEA hails Rs 7148cr allocation for textile sector
- Indian textile industry hails budget with some scepticism
- Arvind Q3 revenue up 16% at Rs 2,706 crore
- Amazon infuses 1,950 cr fresh capital to India operations
- Indian brand Ekaya at Paris Haute Couture Week
- E-commerce platform for artisans in India's Kashmir
- SRTEPC honours RIL with 5 gold trophies
- Indian economy to grow at 7.3% in FY 2018-19: World Bank
- Wazir Advisors Introduction
- 10 Reasons to Invest in Textile Sector in India
- India’s Standing in Global Textile and Apparel Industry
- India: A Land of Opportunities
- Patterns, images and colors demanded in the Iranian carper markets
- CE certificate or sign on the carpet; Indicator of product quality or inaudible imprint of international clarification
- The classification of textile floorings In terms of fire-taking behavior according to the provisions of European Union
- Remain unknown the place of modern carpet design