Prices of spun yarns rose by Rs 2-3 a kg in October, after a steep rise of Rs 6-8 a kg since August. Higher raw material costs resulted in the higher yarn prices. However, mills are offering yarns at prices lower than the quoted price, to get stocks moving. The spun yarn sector too faces dull demand from weavers.
India's Filament Yarn Production Off To a Slow Start
Filament yarn production (which includes polyester, viscose, nylon and polypropylene) was down by 6.75% during the first four months of the current fiscal year. Production stood at 374.17 million kgs. In the corresponding period of 2017-18, production was 401.26 million kgs, which was 6.45% higher than in 2016-17. Polyester filament yarn accounts for almost all the filament yarn production in the country, with a share of over 91%.The share of viscose filament yarn is a little over 4%.
Production of polyester filament yarn at 341.36 million kgs fell 7.61% during the period under consideration. This is a reversal of the 7.35% growth witnessed in PFY production during the first four months of 2017-18 fiscal year, when production was 369.46 million kgs. Production of viscose filament yarn during April-July of the current fiscal was 15.4 million kgs, a marginal growth of 0.33% over the same period of the previous fiscal. In April-July 2017-18, production was 15.35 million kgs.
Fibre Production Rises By 4.86%
Total fibre production (including PSF, VSF, ASF and PPSF) went up by 4.86% to 477.55 million kgs during April-July 2018-19, compared to the previous year's corresponding period, when fibre production was slightly lower by 0.76%.
Production of polyester staple fibre in India has reduced by almost 11% during April-July 2018, compared to the same period of the previous fiscal. According to Textiles Ministry statistics, PSF production during the first four months of the current fiscal was 263.65 million kgs, compared to 295.76 million kgs in the corresponding period of last fiscal.
In contrast, production of viscose staple fibre has increased by as much as 41.25% during the first four months of the current financial year. VSF production was 179.63 million kgs, compared to 127.17 million kgs during April-July 2017-18. During the first four months of 2017-18, VSF production had increased 11.24% compared to the same period of the previous fiscal.
Spun Yarn Production Rises Too
Spun yarn production during the first four months of 2018-19 increased by 2.75% to 1946.34 million kgs, compared to the same period of the previous fiscal year. Cotton yarn accounts for 71.86% of total spun yarn production. During April-July, cotton yarn production went up by 2.53%, to 1398.71 million kgs. Blended yarn production accounts for 18.25% of total spun yarn production. Production rose 3.07% during April-July 2018-19 to 355.24 million kgs, from the same period of the previous year. Finally, production of 100% non-cotton spun yarn, which accounts for around 10% of the total spun yarn production, rose by 3.76% to 192.41 million kgs, during the period under consideration.