High raw material prices hit synthetic yarn industry

Ahmedabad : 03 Sep 11 | 12:43 AM:With prices of two major raw materials viz. purified terephthalic acid (PTA) and mono ethylene glycol (MEG) being raised again, the synthetic yarn industry is reeling under shrinking margins. According to industry players, while the raw material prices have risen by Rs 5 a kg, synthetic yarn like polyester textured yarn (PTY) can only be raised by Rs 2 a kg, thereby affecting margins of yarn players.

While PTA rose by Rs 4.40 a kg, MEG prices have risen by Rs 2.50 a kg. However, according to Dhirubhai Shah of the Surat-based Fairdeal Filament, a synthetic yarn manufacturer, the overall impact of rise in raw material prices will come to around Rs 5 a kg.