Polyester fiber and spun yarn prices have stayed rather unchanged in China, India and Pakistan in March with gross margins however moving differently from their level a year earlier. The fall of the Pakistani currency has boosted margins at spinning mills whereas the rise of the Indian rupee has weakened yarn producers in India.
Polyester fiber prices have stayed frozen in the three largest processing countries in March, resulting in relatively unchanged PSF yarn prices.
100% polyester has only slightly dropped in India, with margins of spinners declining as a result, as far as 30s spun yarns are concerned.
Gross margins are structurally weaker at Indian spinning mills than at rival plants in China and especially in Pakistan.
In March, PSF prices have risen 2.7% in US$ terms in India in March whereas staying unchanged in Pakistan.
Demand for spun yarns remains strong in Pakistan, as a rise of production costs at yarn processing plants is more than offset by the sharp fall of the rupee in the last 12 months.
100% polyester prices have therefore jumped by 13% in a single year in Pakistan, in local currency terms, however falling 9% in US$ terms by contrast.
Prices have dropped by 7% in US$ terms in China, reflecting the fall of the renminbi in the first part of last year.
In India, 100% PSF prices have been unchanged over the annual period.
In local currency terms, margins have stayed the same over the 12-month period in China and Pakistan whereas falling 5% in India.
Source: Emergingtextiles
