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Journalism of Courage
June 7: Yashwant Sinha’s budget for 1998-99 contained nothing for the dull textile yarn market to react to. Only the polyester filament yarn (PSF) and polyester staple fibre (PSF) prices were raised twice by the market leader Reliance Industries – first by Rs 3-7 per kg on the very next day after the budget and by Rs 6 per kg last Saturday due to rise in its input cost because of 8 per cent additional non-Modvatable customs duty. Other spinners too followed suit although support from consumers was poor. Thus, 155 denier weft was quoted higher at Rs 79.50 per kg, 80 denier weft at Rs 93.50 per kg and 80 denier rotoset at Rs 101.50 for Reliance yarn while other spinners quotations were Rs 2 lower than these as usual.
According to market sources, the yarn market ruled steady after the budget. There was a jump of Rs 3 per kg in blended yarn but that too proved short-lived and the prices declined to the pre-budget level of Rs 89 per kg by the week-end.
Surat spinners of viscose/rayon yarn had high hopes fromthe textile minister Kashinath Rana who belongs to Surat and expected excise cut which has not come through. Besides, fabric exports from Surat too declined pulling down the demand for viscose yarn. All the rayon manufacturers like Century Rayon, Indian Rayon, National Rayon who control market acting as syndicate reduced prices by Rs 3-7 per kg with a view to revive demand and give boost to cloth market.
The price came down by Rs 3 to Rs 225 for 150 bright and to Rs 244 for 120 bright; by Rs 7 to Rs 258 for 100 bright; by Rs 5 to Rs 270 for 75 bright and by Rs 7 to Rs 254 for 120 dull. This is expected to give a boost to the sagging market.
Lately the mills reported better offtake of cotton yarn anticipating pick-up in demand for fabric. The cotton yarn prices started improving a little. But according to the market sources, it was more because of short supply than better demand. The arrival of cotton yarn has been rather poor since many cotton yarn spinning mills from south closed down. However the pricesof finer counts have remained firm on demand. 42 single cone was quoted at Rs 560 per 5 kg; 60 single carded at Rs 675 per 5 kg; 64 single combed at Rs 920 per 5 kg; 80 single cone at Rs 790 per 4.54 kg and 100 single at Rs 1015 per 4.54 kg.
Meanwhile, Viscose filament yarns also ruled easy as the spinners reduced the price of 150dn, 120dn and 180dn bright cones by Rs 3, and 0f 100dn bright and 120dn dull cones by Rs 7. the market price of bright cones first quality Century Rayon/Indian Rayon 150dn ruled at Rs 225, 120dn at Rs 244, 100dn at Rs 258 and 75dn at Rs 270.In the case of coarse deniers, 180dn were placed at Rs 214. 300dn at Rs 166, 450dn at Rs 150 and 600dn at Rs 144 remained unchanged. Nylon yarn were also easy. Shreelon 15/1/0dn ruled at Rs 265, 20/1/0dn at Rs 237, Gujnil 20/1/0dn shed Rs 5 at Rs 225, 111/24/0dn at Rs 165 and 30/1/0dn at Rs 310.
