Cheap imports hit domestic yarn prices

Cheaper imports owing to a strong rupee and lower domestic demand have dampened yarn prices.

The rise in imports has forced domestic yarn producers to cut prices. Indo Rama Synthetics and Reliance Industries have reduced rates by 2 to 3 per cent across POY categories.

Not only yarn producers, but also raw material majors are feeling the heat of cheap imports.

Gujarat State Fertiliser Corporation has lowered the prices of caprolactum, an important input for nylon yarn, by Rs 2 a kg from Rs 110.

The market was, however, surprised by GSFC's marginal price cut given the decline in caprolactum prices overseas, said an industry source. Indo-Rama Synthetics has cut the price of coarse yarn by Rs 2 a kg and finer yarn prices by Rs 1.50 a kg. Reliance has cut the prices of 130/34 count yarn by Rs 1.50 to Rs 72.27, 115/108 count yarn by Rs 1.50 to Rs 74.25 a kg, 250/34 by Rs 2 to Rs 68.63 and 250/108 by Rs 2 to Rs 69.60, from May.

In Mumbai, the second largest cotton yarn market in the country, prices are sluggish owing to poor demand. Prices across varieties have come down by Rs 2-3 a kg.

Further, spinners from the south are dumping stocks, which is accentuating the price decline.

Though demand in Bhiwandi, the powerloom hub near Mumbai, is improving, full-fledged production is yet to catch up as majority of the workers are on leave.