Manmade fibre production, as per India’s Office of Textile Commissioner, continued to decline for the sixth consecutive month in May 2018, this month by 4.2% year-on-year to 109 million kg. The drop in manmade fibre production in India was mostly due to a drop in polyester staple fibre production offsetting an increase in viscose staple fibre production. Meanwhile, acrylic fibre production was down and polypropylene was flat during the month. Thus, total manmade fibre production during the first five months of 2018 was at 520 million kg, down 6% compared to the production in the corresponding period of 2017.
Polyester staple fibre
Provisional figures show polyester staple fibre makes up the bulk of staple fibre production in India, as it makes up almost two-thirds (64%) of staple fibre production in the country. Polyester staple fibre production also made up the bulk of the year-on-year drop in India’s overall staple fibre production in 2018. In the first five months of 2018, 335 million kg of polyester staple fibre was produced up to May, down 7% relative to 361 million kg produced in the same period a year ago. On a monthly basis, India’s polyester staple fibre production drop has accelerated in the last three months. During March to May, the decline averaged 10% as against 2% in the preceding first three months. The year 2017 had ended with polyester staple fibre production dropping 5% year-on-year to 852 million kg.
Viscose staple fibre
Viscose staple fibre production, which accounted for 30% of total staple fibre production in India in 2018, reversed the four months of the year-on-year decline in April. In May, production grew handsomely by 11% -- thus unfortunately was not enough to compensate for the decrease in output in other staple fibres, such as polyester. During the month, 32.9 million kg of viscose staple fibre were produced in India, as against 29.59 million kg produced during the same month last year. During the first five months of 2018, 149 million kg of viscose staple fibre was produced up to May, down 2% relative to 152 million kg produced in the same period of 2017. For the most part of 2017 year-on-year production was positive for viscose production, with June and July showing very strong growth. The year thereby ended with an increase of 1.3% in viscose staple fibre production at 370 million kg.
Acrylic staple fibre
Acrylic staple fibre production, which accounts for less than a tenth (7%) of overall staple fibre production in India, dropped more than 8% in May 2018 to 7.14 million kg. Thus, the first five months of 2017 saw production of 35 million kg, down 8% from its level in same period of 2017. The year 2017 ended with total at 93 million kg, down 3% from 2016. In recent months, acrylic fibre producers in India were facing significant increase in production cost as acrylonitrile prices in global markets were increasing rapidly. Between January and July this year, acrylonitrile prices jumped 16% on India CFR basis, forcing acrylic fibre producers to hike their offers in five of the seven months. July acrylic fibre prices were 20-30% higher than their levels in January.
Polypropylene staple fibre
Polypropylene staple fibre production accounts for just 0.3% of overall staple fibre produced in India, although production has risen sharply in recent months. The year started with an increase of 60% year-on-year in polypropylene staple fibre production in January and February but declined 24% in March only to recover in that proportion in April. May saw production remain flat at 0.32 million kg. Thus, the first five months of 2018 saw production total 1.6 million kg, up 14% form their levels in the same period of 2017. The year 2017 ended with production at 3.51 million kg, down 4% from 2016. With the INR depreciating sharply against the basket of currencies, export has become a challenge, as domestic prices are higher than import values, so consumers were more inclined to use imported goods.
