Low demand of polyester, coupled with decline in the raw material prices in the foreign market has led to drop in the prices of the commodity in India The prices of polyester have been plummeting in the domestic market. Low demand of the commodity is a key reason for the drop in its retail prices. While prices of partially oriented yarn (POY) have already dropped by Rs 2 per kg in the beginning of this month, the prices of polyester texturised yarn (PTY) are expected to witness a decline of Rs 1 per kg in the coming months.
According to Dheeraj Sharma, managing director of Fashion World, a small-sized apparel retailer in Kolkata, “Of late, consumers, especially from the youth segment, are increasingly opting for cotton and eco-friendly fabrics, which have been a major reason behind drop in polyester prices this year.”
Dual impact
In the global market, there has been a significant drop in the prices of raw materials including polyethylene terephthalate acid (PTA) and monoethylene glycol (MEG) that are used for manufacturing polyester. Due to decline in the prices of raw materials, there has been a consequent drop in the prices of polyester in the foreign market, which has adversely impacted polyester exports this year.
.jpg) In this context, Sanjeev Rai, director of Jai International Limited, a mid-sized supplier of polyester in Jaipur, says, “Low demand for polyester in Europe has had a dual impact on the domestic market. Europe is regarded as a key market for polyester exporters. However, with decline in demand in the European market, exporters are unable to fetch high prices for the commodity, whereas domestic consumers are now able to purchase polyester products at reasonable rates.” Road ahead
Decline in polyester prices would lead to easy availability of the product in the domestic market. Therefore, manufacturers of polyester fabrics should utilise the commodity to create innovative products like Reliance Industries Vimal, which has recently introduced DEO2. This fabric prevents the growth of fungi, thereby keeping the fabric free from any odour. By introducing such innovative polyester fabrics, retailers would witness high demand for the product in the coming months.
Sabrina Mitchell |
