Huge imports of Chinese polyester yarn are dampening market sentiments. Domestic spinning mills are already running at just 70 per cent capacity. There has been no improvement in buying from domestic and export markets and cheaper cotton and cotton yarn are adding to the problems of the polyester value chain. Chinese supply is eating into the domestic market demand.
A slightly improved demand was seen towards the end of the previous week as Vardhman and some other companies had secured sizeable orders of polyester yarn. But the market again turned bearish as buying reduced. Demand improved because the market pipeline had dried up but there was no improvement in consumption.
Prices of polyester-cotton, poly spun, and recycled yarn have continued to fall. PC, poly spun and recycled polyester yarn declined by Rs5 per kg. 30 count PC combed yarn was sold at Rs230. 30 count PC carded yarn was priced atRs200 per kg. 20 count PC PSF yarn was traded atRs170 per kg. 30 count poly spun yarn was sold at Rs160 per kg. Recycled polyester fiber was at Rs90 per kg.
North Indian states recorded a steep fall in cotton prices as arrivals increased.