Yarn market subdued on low demand

Yarn market is reeling under continued bearish trend for the last few months. Spinners are compelled to cut prices of POY (partially oriented yarn). First line spinners such as Reliance Industries have cut the prices in November by Rs 3.50-5.50 a kg depending on denierage.

Jayesh Pathak, president, Bombay Yarn Merchants' Association, said, "Due to the appreciating rupee, yarns and cloth exports have nose-dived. Non-feasibility of yarn exports has forced the spinning fraternity to divert majority of the capacities to the domestic market, which was already over burdened with surplus stocks."

In the case of cotton yarn, prices are steady but textiles mills are not buying much as they feel prices are high. Besides, exports are also subdued.

However, according to a cotton yarn traders, volumes have been improving at the current price since last fortnight.

Nylon yarn market is in a better condition and last month, spinners such as GSFC raised prices by 4 per cent.

Meanwhile, according to Jayesh Pathak, the association was planning a trading ring for yarn brokers with latest technology. Currently, trading takes place in the open.