Indian PSF prices remain unchanged amid global disparities

Indian polyester staple fibre (PSF) prices for November 2024 remain steady at Rs 93,000-Rs 95,000 per ton (about $1,105-1,129), even after a Rs 1,000 per ton hike in October. Despite a recent Rs 400 per ton drop in purified terephthalic acid (PTA) prices, now at Rs 70,100 ($833.42) per ton, PSF costs in India are still misaligned with global trends and crude oil price shifts.

This pricing gap limits India's textile competitiveness, as higher raw material costs elevate production expenses, hindering Indian garment, yarn, and fabric exports.

R K Vij, Textile Association of India’s emeritus president and PTAIA secretary general, noted that domestic PTA costs surpass imports, with local PTA priced at Rs 70,100 per ton versus imported PTA at Rs 66,500 ($790) per ton, primarily from China. Similarly, Chinese PSF is available at Rs 90,000-91,000 per ton ($1,070-1,081), undercutting Indian prices.

Domestic costs for monoethylene glycol (MEG) and Melt are Rs 58,800 ($699) and Rs 80,290 ($954) per ton, respectively, with MEG up Rs 300 per ton but Melt down Rs 340 last month. Although crude oil prices dropped 4.9 per cent from $74.38 to $70.73 per barrel in early November, Indian PSF and raw materials remain unaffected, exacerbating cost challenges for domestic textile producers.