India’s polyester staple fiber (PSF) prices remain elevated due to persistent domestic challenges, even as global prices have shown a downward trend. Factors such as raw material price fluctuations, high production costs, and supply chain disruptions are limiting the price reduction of PSF in India, despite a global decline in polyester prices.
The price of PSF in India is primarily influenced by the cost of key raw materials like purified terephthalic acid (PTA) and monoethylene glycol (MEG), which have experienced price hikes in the domestic market. Moreover, logistical challenges and higher energy costs contribute to the overall inflationary pressures on the textile sector.
While global PSF prices have decreased due to lower demand in key markets and stabilization in raw material costs, India’s local market is unable to follow suit because of these structural issues. Domestic manufacturers are also facing increasing competition from imports, which affects the pricing dynamics.
Industry experts suggest that unless there is significant improvement in the supply chain and reduction in raw material costs, Indian PSF prices are unlikely to see a sharp decline. The outlook for the sector remains cautious, with manufacturers continuing to grapple with these ongoing domestic challenges, which may affect overall industry growth in the short term.
