Improved prices have strengthened the man-made fibres industry in the country. Prices of yarn have firmed up globally and at home almost for all types. However, outlook on demand continues to be mixed and manufacturers have held back production of yarn types where demand was weak.
Domestic viscose filament yarn (VFY) prices have been rising since June this year and the uptrend has been maintained. Prices of 20 denier nylon filament yarn (NFY) firmed up for the sixth consecutive month in August, and polyester filament yarn (PFY) and polyester staple fibre (PSF) prices also gained.
According to a study by Industry Analysis Service (IAS) of CMIE, VFY production has declined but prices have gone up. VFY varieites, which sold in the Rs 177-248 per kilogram range in August 2001, shot up to Rs 218-314 per kilogram in August 2002.
PFY production rose by about 8.5 per cent till May end. According to figures available for April-May 2002, cumulative PFY production was 1,59,220 tonnes, up 10.3 per cent over corresponding period. The prices have improved marginally in August 2002 compared to August 2001.
Major varieties of PFY which ranged between Rs 83-250, improved this year to Rs 87-252. On the other hand, international PFY prices in US, Gulf and North European markets remained firm in June after rising in April and May. The Pacific Rim was an aberration as prices remained depressed for the seventh consecutive month in June.
Production of nylon filament yarn (NFY) recorded 25.9 per cent growth in April-May 2002 to 5132 tonnes. Imports declined by about 34.9 per cent but supply in the domestic market was steady as NFY exports also fell 26.7 per cent in these months.
Prices of 20d NFY jumped 6.7 per cent in August 2002 at Rs 228 per kilogram over last year, while /40d NFY remained stable at Rs 172/kg. Globally, NFY prices have risen, the most in east Asia and western Europe in May. East Asia prices jumped Rs 8000 at Rs 90,790 per ton of NFY in one month. In western Europe, NFY jumped by Rs 10,000/t to Rs 1,49,777.
