Strong rupee may dent yarn prices

The prices of intermediates such as texturised yarns, chemicals and petrochemicals-polymers are set to fall due to the stronger rupee. With fall in import costs due to the strong rupee "we expect the spinners to reduce the prices of POY-partially oriented yarns by Rs 2-3 a kg from May," said Jayesh Pathak, president of Bombay Yarn Merchants Association.

Leading Indian producers such as Reliance Industries keep their product prices competitive to the landed cost of imported material. With the export of cotton becoming costlier due to the strong rupee, the prices of cotton yarns have been affected. All types of cotton yarn have fallen by Rs 3-4 a kg in the last one month, said Bharat Malkan of IB Yarns.

The prices of chemicals are also coming down. THF-tetra hydro furan has come down from Rs 155 a kg a month back to Rs 147 a kg. Acetone nytryl has declined from Rs 103 to Rs 97 and caustic flex from Rs 1250 per five kg to Rs 1175. DMSO-di-methyl sulpho oxide is quoted at Rs 65 and acetone at Rs 46 tanker load.

The market is rife with rumours that in the next few days, anti-dumping duty will be announced on acetone imports.

Few months back, leading domestic manufacturers had complained to the anti-dumping authority about dumping of acetone into the country.