Stronger cotton helps poly, PC yarn prices to go up in India

Polyester-cotton (PC) and poly spun yarn prices rose in the domestic market today as demand improved slightly amid better market sentiments. According to the traders, the upward trend in the cotton value chain was, in turn, supported by PC and poly spun yarn, which increased by ₹3-5 per kg in Ludhiana and Surat. Reliance Industries Limited (RIL) had further cut prices of upstream raw materials for this week. 

Although demand of polyester yarn and blended yarn was not encouraging, buyers are still purchasing, according to trade sources. They are restocking yarn before the prices rise. Higher cotton prices have inspired buyers to get supplies during the arrival season. Increased prices of cotton supported PC and poly spun yarn too. “Buyers are totally silent on purchases. They are coming ahead with requirements of only a limited quantity. There was improved buying due to change in the season. The entire textile industry will focus on producing garments for summer. So, increase in demand is quite logical,” a Ludhiana-based trader told Fibre2Fashion.

Polyester-cotton and poly spun yarn gained ₹5 per kg in Ludhiana, while Surat market witnessed an increase of ₹3-4 per kg, sources said. 

In Ludhiana, 30 count PC combed yarn (48/52) was sold at ₹215-225 per kg (GST inclusive). 30 count PC carded yarn (65/35) was priced at ₹190-195 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at ₹155-165 per kg. 30 count poly spun yarn was sold at ₹158-163 per kg. Recycled polyester fibre (PET bottle fibre) was at ₹84-86 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In Surat market of Gujarat, 30 counts poly spun yarn was traded at ₹144-145 per kg (GST extra) and 40 counts poly spun yarn at ₹159-160 per kg. 

RIL decreased prices of purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT for the current week. On Friday, RIL fixed prices as: PTA at ₹81.20 per kg (-0.50), MEG at ₹52.20 per kg (-0.70) and MELT at ₹87.58 (₹-0.67) per kg. In the beginning of this month, PSF was priced down by ₹2 to ₹105 per kg for the current fortnight. 

North Indian states witnessed a constant upward trend in cotton prices as ICE cotton and domestic factors supported the trend. According to local traders, cotton arrival is not picking up. There were speculations that Cotton Corporation of India (CCI) may buy cotton and multinational companies (MNCs) are also set to begin purchases. There were strong factors to support the price rise in cotton. Cotton arrival was noted at 19,000 bales of 170 kg in north Indian region. Cotton prices increased by ₹150-250 per maund of 37.2 kg in the last one week. The natural fibre was traded at ₹6,450-6,500 in Punjab, ₹6,400-6,500 in Haryana and ₹6,650-6,700 per maund in upper Rajasthan. Cotton was sold at ₹63,500-65,000 per candy of 356 kg in lower Rajasthan. 

Source: Fibre2Fashion

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