India's polyester yarn export faces pressure from China

09 April 2012 06:07  [Source: ICIS news]

MUMBAI (ICIS)--India's polyester makers are facing fierce competition from China in the polyester filament yarn export market, a source from Alok Industries said over the weekend.

The source estimated that Chinese polyester producers inventory was running high at 30 days which was forcing them to sell at competitive prices.

China's 150 denier oriented yarn (POY) and drawn texturised yarn (DTY) were sold at $1.60-1.63/kg ($1,600-1,630/tonne) (€1,216-1,239/tonne) and $1.80-1.85/kg FOB China on 3 April, respectively, the lowest among other Asian regions according to ICIS.

This was below Indian offers for these yarns at  $1.62-1.67/kg and $1.90-1.92/kg FOB India.

The company was also facing pressure in the local market as demand has been weak since April 2011.

"The economic slowdown in India has affected polyester demand; sales have been poor and margins are bad. Cotton is abundantly available and has been capping the top end of polyester prices," he said.

Alok doubled its polycondensation capacity at Silvassa, to 1,400 tonnes/day in September-October 2011. It now has the capacity to produce 900 tonnes/day of POY, 150 tonnes/day of fully drawn yarn (FDY), 200 tonnes/day of polyester staple fibre (PSF) and 150 tonnes/day of polyester fibre chips.

With half of its polyester yarn being exported, Alok is one of the largest exporters of polyester yarn in India, the source said, adding that they export polyester yarns to Syria, other African nations, Latin America, Eastern Europe and South East Asian countries.

Alok Industries is one of the largest manufacturers of home textiles, apparel fabrics garments in India and started up its first 180,000 tonne/year polyester yarn line in 2009.

Additional reporting by Malini Hariharan

($1 = €0.76)

By: Becky Zhang
+65 6780 4359

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