Drop in crude oil prices affects synthetic yarn

With plunge in crude oil prices and key polyester yarn raw materials such as Monoethylene Glycol (MEG) and Purified Terephthalic Acid (PTA), the synthetic yarn makers too have to cut prices and incur loss over the inventory. President of the Bombay Yarn Merchants Association, Jayesh Pathak said that usually fall in crude oil prices, followed by raw material prices are beneficial to synthetic yarn makers but as of now they are incurring loss of margins and stocks since the current inventory is valued at over US $ 100 a barrel levels of crude oil. Moreover, yarn prices have come down by 25 per cent in the last two months.