Polyester Staple Fibre (PSF) prices in India came down to below Rs. 100 per kg as Reliance, India’s largest player in the polyester value chain, has further decreased it to Rs. 99 per kg. Various domestic and global factors are pushing prices of PSF down. Textile industry, which is dealing with unruly cotton prices, can expect some respite from cheaper PSF.
RIL has slashed PSF prices by Rs. 3 per kg for the first fortnight of December, according to market sources. However, actual prices of PSF after discount are already at low levels. Sources said that the company provides a discount of Rs. 10-12 per kg, which brings the actual prices down to Rs. 89 per kg. The company revises PSF prices on a fortnightly basis after reviewing the price movements in China, fluctuations in crude oil and other global factors.
RIL has been slashing the prices of raw materials of PSF for the last few weeks. Chinese economic activities are affected by lockdowns in various parts of the country which have caused weak demand in local markets and a decline in the prices of PSF and its raw materials. A reduction in the prices of crude oil has also led to a decline in PSF prices. Recycled polyester fibre (PET bottle fibre) also came down to Rs. 77-79 per kg.
Higher cotton prices are creating an uneasy scenario for the entire value chain, but a continued decrease in the prices of polyester is providing relief to the industry. There are indications that domestic textile industry is focusing on polyester as raw materials to cut production, especially for winter garments.
