Surat experiences decline in polyester, viscose yarn prices

Polyester yarn prices in Surat declined by Rs 1-2 per kg across most varieties in June. This dip was directly linked to a price cut in virgin polyester fiber, which itself was influenced by a steep drop in crude oil prices, a consequence of factors like the US-China tariff discussions. Interestingly, despite major producers reducing virgin polyester fiber costs, spinning mills only partially passed on these reductions. This suggests a cautious approach from mills, likely due to weak market demand.

The viscose yarn market saw even more decline, particularly in Surat, largely due to the flood of cheap imports from China. These Chinese supplies were reportedly landing in India at 5-7 per cent lower prices than domestic rates, creating immense pressure on local manufacturers. Specifically, viscose compact yarn prices in Surat fell by Rs 2 per kg. While viscose vortex yarn prices remained stable in Surat, they saw Rs 2 per kg decline in other markets.

Mumbai's viscose yarn market remained relatively stable compared to Surat. However, deals for imported viscose yarn, especially vortex varieties, were being finalized at lower prices, particularly in southern states. This clearly indicates a strong preference for more cost-effective imported options. The influx of cheap Chinese viscose yarn has directly undercut domestic prices and consequently reduced demand for locally produced yarn, highlighting a challenging period for Indian textile manufacturers.