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Related Keywords: bleak outlook, Bombay yarn Traders association, decline in world buying capacity for textile, domestic production, dwindling Chinese economy, export potential, Indian textile industry, Indo Rama Synthetics, market crash in China, MEG, multi-year lows, price of raw material, PTA, sharp decline, synthetic yarn, texturised yarn

Export potential for synthetic yarn in the Indian industry is seeing a sharp decline again with the dwindling Chinese economy. The recent market crash in China has a lot to do with bleak outlook of domestic production in almost all sectors including textiles. Units in China have been cutting down production due to decline in the world's buying capacity for textiles. This has resulted in synthetic yarn exports, especially texturised yarn falling steeply, said Jayesh Pathak of Bombay Yarn Traders Association.

Related Keywords: CITI, excise duty, increase in demand, manmade fibre, MEG, mono ethylene glycol, per capita consumption, PTA, Purified terephthalic acid, synthetic fibre, Textile Industry

Globally, manmade fibre accounts for 70 percent of the fibre consumption while in India; it is less than 30 percent. The Indian textile industry to boost use of synthetic fibre want reduction in excise duty on all manmade fibre and filament from the existing 12 percent to 6 percent. As reduction in excise duty in manmade fibre will lead to increase in demand.

Related Keywords: crude oil price, Indian yarn makers, MEG, polyester raw material, PTA, Reliance Industries Limited, rise in raw material price, South Gujarat Textile Processors Association, synthetic yarn, yarn price

The two key raw materials Purified terephthalic acid (PTA) and mono-ethylene glycol (MEG) used in making synthetic yarn although have remained low globally but in India the same have risen by Rs 10-15 per kg in recent past and have remained at high levels putting Indian yarn makers' margins under pressure.

Related Keywords: diethylene glycol, DOW, Dow Chemical Company, EQUATE, Kuwait Olefins Company, Kuwait Styrene Company, MEG, MEGlobal, mono ethylene glycol

Dow Chemical Company (DOW) will reconfigure and reduce its equity base in the MEGlobal and Greater EQUATE joint ventures, including The Kuwait Olefins Company (TKOC) and The Kuwait Styrene Company (TKSC) in line with its prior announcement to rationalize its investments in certain joint ventures.

Dow expects this transition to be completed by mid-2015. While Dow will retain a substantial stake in these partnerships, this effort will open opportunities for new investment in these successful and growing enterprises.

Related Keywords: domestic yarn market, Indian polyester yarn maker, MEG, polyester yarn raw material, PTA, Southern India Mills' Association, Suryalakshmi Cotton Mills

Indian polyester yarn makers are witnessing drop in their margins by about 10-15 percent due to rise in raw material prices by Rs.10-15 a kg in the domestic market. In the domestic market, polyester yarn raw materials prices stand at Rs 115-120 a kg, against Rs 100 a kg three months ago. Prices in the international market stand at Rs 110 a kg.