Output of blended yarn rose 15.81% in November 2009 compared with an 8.66% fall in November 2008. Till November 2009 output moved up 5.96% snapping a 2.63% fall in April-November 2008. Production of viscose staple fibres surged 79.14% in November 2009 – Highest since June 2007, compared with a 34.94% fall in November 2008. It grew 22.73% in April-November 2009 compared with a 14.64% decreased in April-November 2008. Production of polyester fibre moved up 44.29% in November 2009 compared with a 27.19% decline in November 2008. Production increased 19.44% in April-November 2009-10 compared with a 9.52% decline in the same period a year ago.

RIL has indicated that the POY prices have increased to US$ 1279 per tonne in the quarter ended December 2009 from US$ 1200 per tonne in the same period of the previous year. However, they have fallen on a sequential basis from US$ 1306 per tonne in the quarter ended September 2009.

Similarly, PSF prices have surged by over 7% from US$ 1090 per tonne in the quarter ended December 2008 to US$ 1169 per tonne in the quarter ended December 2009. But they have fallen sequentially from US$ 1196 per tonne in the quarter ended September 2008.

Polyester has witnessed rise in its prices for January 2010, on the back of increase in its raw material prices. The PSF (Polyester Staple Fibre) prices rose by 29% in January 2010 to USD 1250 per MT as against USD 970 per MT in January 2009. On the other hand, prices of POY – (Partially Oriented yarn) have increased by 27% to USD 1300 per MT in January 2010 as against USD 1020 per MT in January 2009. The leading players of Polyester in India include, JBF Industries, Indorama Synthetics and Garden Silks.

The sharp rise in raw cotton and cotton yarn prices have come as a blessing for the Man Made fibre sector. Not only are the MMF yarn prices increased, but also the demand growth has accelerated due to partial shift away from cotton to MMF. Also, the rising domestic demand, the recovery in the global demand together powers the Indian MMF sector to report healthy growth in demand. If the crude oil prices remain range bound around US$ 70 to 80 per barrel, and if the cotton and MMF prices continue to harden, the MMF producers will optimally benefit from rise in demand and prices. Reliance Industries indicated that on a sequential basis, within the polyester chain, magins shifted from polyester products to the fibre intermediates. As a result, Integrated producers like Reliance Industries benefited more while stand alone polyester producers were impacted. Going forward, while higher cotton prices will support higher polyester prices, on a relative basis, the integrated players will benefit more than the stand alone polyester producers.