Man-made fibre prices pick up
Lower demand notwithstanding, prices of polyester filament yarn (PFY) have reversed since the steady fall seen from FY14. From April-august FY18, prices rose by 7% yearon-year on account of rising costs of inputs, which are mainly petrochemical derivatives. Hence, the price is linked to crude oil. Note that on the back of falling crude oil prices since FY14, PFY prices too had slipped considerably. “In the last five years, consumption of PFY in India declined on account of fall in consumption of non-cotton fabrics, technical textile leading to slower offtake of PFY,” says a study by CARE Ratings. Consumption had fallen by 16.2% compound annual growth rate between FY13 and FY17.