India: High raw material costs a big worry for Polyester Dyed Yarn manufacturers

Market Intelligence

India: High raw material costs a big worry for Polyester Dyed Yarn manufacturers

The price of polyester texturised yarn, the benchmark yarn variety 80Den (NIM), has skyrocketed from Rs. 124 per kg on 01^st August to Rs. 130 per kg on 12^th August 2013, owing to the rise in the prices of raw materials i.e. PTA, MEG. With the prices of PTA and MEG rising significantly over the last week, polyester filament yarn makers are having a tough time to survive in the market. The weakening Indian rupee against US greenback added to the woes of yarn manufacturers and problems aggravated. PTA prices have increased from US$1,060 per MT to US$1150 per MT while MEG prices increased US$1,000 per MT to US$ 1100 per MT in the last one week. On the other hand, US Dollar exchange has gone up from Rs 58.75 to over Rs. 61 in last fortnight.

According to a local Polyester yarn manufacturer, they are even facing workers problem a lot due to the festive season, which is further effecting to the production efficiency and resulting in price hike of the yarn. He said, "Currently, prices are still not stabilized. From here, the situation could even worse.”

Similarly, the Polyester Dyed Yarn manufacturers who purchase yarn and dye it to numerous colors as the market demands, are finding it difficult to survive. As the yarn prices increasing every day, Polyester Dyed Yarn prices are foreseen to be on higher side in the days to come.

Current local market prices of popular varieties of Polyester Texturised yarns are as below:

80/34 NIM: Rs.132.25/Kg

80/72 IM: Rs.133.75/Kg

80/108 IM: Rs.144.75/Kg

150/48 NIM: Rs.123.75/Kg

150/108 NIM: Rs.127.75/Kg

80/72 LIM Cotluk: Rs.146.50/Kg

80/72 HIM Cotluk: Rs.145/Kg

150/48/350 Twisted: Rs.152.25/Kg