Polyester yarnmakers set for higher profit margin on crude price recovery

Recovery in crude oil prices is set to benefit synthetic yarn manufacturers because of their ability to pass on the increase to consumers, that is, fabric manufacturers.

After falling to $57.77 a barrel on October 2, crude oil prices bounced back to trade almost at three-month high of $67.50 a barrel on Friday.

Since synthetic yarn is a derivative of crude oil, manufacturers have been able to raise their product prices. Synthetic yarn has become costlier by 5-7 per cent in the last two months along with a jump in cotton yarn prices.

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