India’s Polyester Chips Prices Increased By 2.8 Percent Amid Firm PTA And MEG Prices And Improved Buying

India’s Polyester Prices Strengthened On The Back Of Robust PTA And MEG prices And High Buying Sentiments.

The prices of polyester yarn in India grew on the back of improved purchasing. Polyester-cotton yarn also traded at a more elevated price. The polyester value chain saw an improved demand following the increase in prices of polyester staple fibre (PSF). A week ago, Reliance set the prices of PSF and its upstream raw materials higher. It is believed that increased prices of crude oil have driven up polyester.

The prices of Polyester yarn rose in significant trading centres like Ludhiana and Surat by INR 3-4 per kg. Mills raised their selling prices following a rise in PSF and upstream raw materials prices by RIL. According to a trader from Surat, more expensive PSF pushed the buyers to hoard the goods. A longer winter also drove up the polyester value chain.

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The demand for cotton and viscose clothing increases in summer, whilst in winter, polyester is favoured.  All prominent markets of the countries, witnessed a hike in prices of Poly spun, and PC yarn by INR 3-4 per kg.

In Ludhiana, 30-count PC combed yarn (48/52) traded at INR 211-221 per kg (GST inclusive). 30-count PC carded yarn (65/35) costs INR 190-195 per kg. 30-count poly spun yarn was selling at INR 155-160 per kg. Recycled polyester fibre (PET bottle fibre) was recorded at INR 82-84 per kg.

Poly spun yarn was selling higher in Surat, Gujarat. The downstream industry demand was more robust as the rise in prices of PSF propelled buyers to make new deals. Poly spun yarn accumulated INR 2-4 per kg. 30-count poly spun yarn was selling at INR 139-140 per kg (GST extra), and 40-count poly spun yarn at INR 154-155 per kg.

Reliance Industries Limited raised the cost of MELT and purified terephthalic acid (PTA) during the present week. However, monoethylene glycol (MEG) remained intact. On Friday, RIL set the prices as follows: MEG at INR 55.90 per kg, PTA at INR 80.50 per kg (+3.00), and MELT at INR 87.80 (+2.58) per kg. RIL rose PSF prices for the current fortnight by INR 3 to INR 105 per kg.

The prices of cotton in north India relaxed by INR 100-150 per maund of 37.2 kg after restricted purchasing by mills. The arrival of cotton also remained restricted owing to a decline in prices for cotton and the extended winter season. As per local traders, cotton arrival dropped all over again as farmers were crushed by the lowering prices of cotton. Mills were wary about buying because of the disparity in prices.

Cotton arrival lowered to 17,000 bales of 170 kg each. The natural fibre was selling at INR 6,125-6,275 per maund in Punjab, INR 6,250-6,425 per maund in upper Rajasthan, INR 6,125-6,275 per maund in Haryana and at INR 59,000-61,000 per candy of 356 kg in lower Rajasthan.

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There was no significant gain in Panipat’s recycled yarn market either, as the recycled yarn prices were stable. According to traders, consumer buying is not any better because of monetary challenges. The domestic and export demand persisted in being mute. In Panipat,  10s recycled yarn (white) sold at INR 88-90 per kg (GST extra); 10s recycled yarn (coloured - low quality) traded at INR 80-85 per kg; 10s recycled yarn (coloured - high quality) at INR 105-110 per kg and 20s recycled PC coloured (high quality) at INR 110-115 per kg. 10s optical yarn prices were at INR 100-110 per kg in the market, prices of comber were at INR 150-155 per kg, 30 recycled PC coloured (high quality) was at INR 145-150 per kg and Recycled polyester fibre (PET bottle fibre) prices at INR 80-82 per kg.

According to the article by Procurement Resource, the largest polyester value chain player in India, Reliance Industries Limited (RIL), hiked the prices of purified terephthalic acid (PTA) and MELT further, whilst Monoethylene glycol (MEG) remained unhinged, the same as previous week. The company inspects the Chinese price trends and crude oil fluctuations in order to set the polyester raw materials prices.

The Indian market sticks to the price trends of RIL since it is the country's dominating player. As per the sources in the market, RIL set the price of PTA at INR 82.00 per kg (+1.30), MELT at INR 88.91 per kg (+1.12), and MEG at INR 54.10 per kg (unchanged). The revised polyester raw material prices will be enforced on Saturday. A week ago, the company raised the polyester staple fibre (PSF) prices by INR 3 per kg to INR 105 per kg.