PSF POY FDY DTY prices in India

PSF, POY, FDY, DTY Prices in India
India Polyester Fiber and Yarn Prices Monthly Report
11 June 2008
Polyester prices sharply increased in India in June, a record rise for a single month. This is mostly due to a strong rise in PTA prices on the international market while demand is also expected supporting prices at their new level. Polyester prices are now reaching a two-year high, in addition, reflected in our series of statistical tables from our India Correspondent.

Polyester prices in India have gone up by an unprecedented 9-10% in June from the previous month. A short supply of PTA on the international market and consecutively rising raw material costs resulted in this sudden surge. Prices are expected to continue rising for the next two to three months.
PTA, MEG prices up
PTA price in June rose over 15% to Rs 49,700 (US$1,168) a metric ton.
MEG less steeply increased, by only 5.5% to Rs 50,000 (US$1,176).
The upward movement in prices is the result of a sharp increase in crude oil prices.
Growing demand for PTA has also resulted in a short supply of the commodity globally.
This has further boosted PTA prices.
While MEG prices are expected to rise less sharply over the next few months, PTA could continue to increase for some more time.
PTA and MEG supply positions on the global market are expected to ease slightly by the end of the year, when new capacities will become operational.
Polyester yarn prices at highest in 2-3 years
In line with higher raw material costs, POY prices in June have increased 9-11% in India over the previous month.
A shortage of POY may even appear in the next 4-5 months.
New texturising machines are installed every month but there has been no capacity additions in POY.
Prices of fully drawn yarns have increased 13-18% over the previous month, and of textured yarns by 7-12%.
Polyester staple fibre prices have gone up by 11-13%.
Reliance Industries increased its PSF price on May 24 by Rs 4 (9 cents) a kg, and another hike of Rs 5 (11 cents) a kg was announced on June 1.
It is expected that texturisers may raise prices by another Rs 1-2 (2-4 cents) a kg in the following days.
These price levels of polyester yarns are the highest in the last three years in India. Polyester prices are 8-12% higher than in June 2007 and 11-13% higher than in June 2005.
Fabric movement supports higher prices
The price hike has come at the right time for texturisers, as the demand will partly support the higher prices.
Weavers in May had purchased stocks to cover their needs until June 20 and new orders for yarns are expected to come in after June 15.
Fabric production for the festive season has begun, fabric movement has picked up on the market and fabric prices are expected to move up by Rs 2-3 (4-7 cents) a meter in the coming months.
Some texturisers have reported good export orders, as the rupee continues to depreciate.
But with the higher prices and spiralling inflation in the country, export prices would have to go up.
Polyester production during 2007-08
Polyester production in the country has recorded a growth of around 8-10%.
During Indian fiscal year April-March 2007-08, PSF output at 877.18 million kgs was 11% higher than in the previous year.
Polyester filament yarn production at 1420.03 million kgs, grew almost 12%.
Higher production of fibres and yarns has been supported by the steadily rising fabric production.
At around 57,490 million square meters during 2007-08, fabric output recorded a growth of 7.68% over the previous year.