Indian yarn market navigates rising dollar and seasonal demand pressures

India's yarn market is facing a mix of challenges and opportunities as the strengthening US dollar and seasonal demand shape market trends. The rising dollar has increased the cost of imported viscose yarn, crucial for the textile industry. This has created supply chain pressures and forced manufacturers to adjust prices, particularly in hubs like Surat and Mumbai.

Despite the cost challenges, yarn prices in these markets remain stable or show a slight uptick. Manufacturers, feeling the impact of higher import costs, are passing some of these increases to consumers. The situation is further complicated by tight payment conditions, with liquidity issues affecting buyers and delaying procurement.

Seasonal demand remains a strong driver for the market, with the pre-festive and wedding seasons boosting consumption of viscose, polyester, and polyester-cotton blends. This seasonal rise has helped sustain domestic demand for yarn, particularly for decorative and high-quality fabrics.

Market participants are adapting by exploring domestic raw material sources and rethinking pricing strategies to manage rising costs. Agility will be key as the industry balances global economic shifts with robust local demand, ensuring profitability in a fluctuating market environment.