Indian synthetic yarn exports haven’t grown substantially.
The industry is globally uncompetitive in terms of prices, compared to China, Korea, Thailand, Taiwan, Indonesia and Malaysia.

As the share of domestic sales in synthetic yarn is substantially more than exports, the industry has had much less of a benefit from a falling rupee.

The industry has become entirely global and prices are based on international market comparisons. This is also a period of slacker demand.

PTA/ MEG and benzene are crude oil derivatives and have seen a price rise of 25 per cent to 30 per cent and 30 per cent to 35 per cent respectively in six months. Demand has also been poor. Be it spinning, weaving or even finished products, the synthetic yarn value chain has been unable to forward the price rise to buyers.

Imports are turning unviable and have slowed. Also, the market has turned volatile.

An increase in crude oil prices has led to a great rise in its derivative petrochemicals, polymers, plastic-making raw material and feedstock like naphtha.

The price increase in the international market for all petrochemicals, solvents and polymers has been sharp since April.

India’s synthetic yarn exports grew in 2017-18 by about five per cent.