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Rising crude oil price drives up cost of synthetic textile raw materials

Brent crude rose 15.2 per cent in a month to its current $64.12 a barrel for spot delivery

Dilip Kumar Jha  |  Mumbai 

Rising crude oil price drives up cost of synthetic textile raw materials

have become costlier by two to five per cent over the past month for manufactures, due to a sharp increase in prices.

rose 15.2 per cent in a month to its current $64.12 a barrel for spot delivery. This followed developments in Saudi Arabia and a rise in US-North Korea geopolitical tension. Purified terephthalic acid (PTA) is a derivative and an input for polyester fibre. It was $692 a tonne on Tuesday, a rise of 4.5 per cent in November alone. (mono-ethylene glycol) has become costlier by 2.8 per cent in November, to $928 a tonne on Tuesday. Other have also become costlier.

“Prices of polyester staple fibre have risen by 10 per cent over the past two months to Rs 82 a kg, due to an increase in prices. China, a large producer for recycled polyester staple fibre produced from PET (polyethylene terephthalate) bottles, has stopped procurement of such bottles, resulting in a shortage of raw material for their Hence, prices of recycled polyester staple fibre have gone up,” said S K Khandelia, president, Sutlej Textiles and Industries, largest manufacturer of coloured in India.

Companies in plastics are also impacted. Indo Rama Synthetics, this country's largest polyester-only manufacturer, had a net loss of Rs 17.7 crore in the September quarter, compared to a loss of Rs 14.7 crore for the same quarter a year before.

(goods and services tax) rates on some products were cut from 18 per cent to 12 per cent, which came as a relief for us. Raw material prices have jumped by two to five per cent, due to rising prices. We expect a further increase in prices of in the short term. But, with growing demand for polyester products, we were able to pass on the raw material price hike to consumers," said O P Lohia, chairman of Indo Rama.

First Published: Wed, November 08 2017. 00:34 IST
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