Polyester-cotton yarn segment in India may witness steep hike in prices as Brent crude oil skyrocketed and neared to $100 per barrel. The rise in crude oil prices is due to worries of supply disruption mainly because of escalation in Russia-Ukraine tension. This will result in costlier polyester staple fibre (PSF) and polyester-cotton (PC) yarn.
Ashwini Chhabra, a prominent trader from Ludhiana, told that PC yarn prices did not witness price rise in the last week as weak demand from fabric manufacturers did not support the market. But PC yarn may now see upside trend as crude oil price is rising due to recent geo-political developments. Crude oil reacted sharply in international market as traders feared supply disruption from Russia, which is major supplier to the world market. The US and Europe have already started announcing sanctions against Russia.
“Earlier, PC yarn was getting support from the rise in cotton prices. But now the situation seems to have been reversed. Cotton and cotton yarn prices softened in the last two weeks. But PC yarn will find support from hike in crude oil prices, which will push up prices of cotton yarn also. However, subdued demand from garment manufacturers may affect market sentiments. PC yarn prices depend on the price fluctuation of polyester spun fibre and cotton. PSF prices were increasing regularly due to rise in crude oil. PSF has become costlier by about 8 percent in February itself,” according to Chhabra
In Ludhiana, the country’s most prominent man-made yarn market, PC combed yarn (48/52) was sold at Rs. 290-300 per kg. PC carded yarn (65/35) was priced at Rs. 240-250 per kg, while PC (recycled) yarn O/E (40/60) was traded at Rs. 223-225 per kg. Acrylic NM (2/48) was priced at Rs. 340-345 per kg, and acrylic NM (2/32) at Rs. 280-285 per kg.
RK Vij, advisor (Polyester Business), at Indorama Synthetics (India) Ltd, the leading PSF producer in the country, told that the prices of purified terephthalic acid (PTA) and monoethylene glycol (MEG) increase when prices of crude oil go up. This in turn increases the price of PSF. Indorama’s PSF (1.4 Denier) was currently ruling at Rs. 120 per kg, compared to Rs. 116 per kg on February 15 and Rs. 112 per kg on February, according to market insight tool TexPro.
