In the past week, the Indian yarn market witnessed a notable surge in the prices of polyester, viscose, and polyester-cotton (PC) yarn, with rates climbing sharply by ?4-8 per kilogram. This significant price hike comes despite the tepid demand from the downstream industry, highlighting the underlying factors driving this upward trend.

The primary catalyst behind the price escalation is the increased cost of raw materials. As the global market experiences fluctuations, the impact on the local yarn industry is inevitable, leading to higher production costs. Additionally, the surge in freight charges has compounded the situation, further elevating the prices of these essential yarns.

In key markets such as Ludhiana and Surat, the effect of these rising costs is particularly pronounced. Ludhiana, known for its robust textile industry, saw a marked increase in polyester yarn prices. Surat, another critical hub for yarn and fabric production, also experienced a significant price hike in polyester yarn. Despite these trends, Fully Drawn Yarn (FDY) prices remained steady, a direct result of weak demand, which has provided a temporary reprieve from the escalating prices seen in other yarn types.

This recent trend underscores the intricate dynamics of the yarn market, where raw material costs and logistical expenses play pivotal roles in shaping pricing structures. For manufacturers and businesses relying on polyester, viscose, and PC yarn, these developments necessitate strategic adjustments to mitigate the impact of rising costs. It also emphasizes the importance of staying attuned to global market trends and local economic factors that influence the yarn industry.

In summary, the sharp rise in polyester, viscose, and PC yarn prices in India, driven by higher raw material and freight costs, highlights the complex interplay of market forces. This trend presents challenges and opportunities for stakeholders in the textile industry as they navigate these changing economic landscapes.