Shortage spikes nylon yarn prices

SURAT: With the central government imposing anti-dumping duty on caprolactum — a raw material used in manufacture of nylon yarn — prices of nylon filament yarn have gone up by Rs 50 per kilo in the local market, giving powerloom weavers a tough time.
Industry sources said that the Gujarat State Fertiliser Corporation (GSFC) is the sole producer of caprolatum and supplies it to many domestic spinners producing nylon textile grade chips.These manufacturers, in turn, produce nylon textile yarn.
Surat is a major consumer of nylon filament yarn for producing various garments and other applications. It’s textile sector consumes 10,000 metric tonnes every month, which accounts for about 70% of the total consumption in the country.
Vinay Agarwal, nylon yarn manufacturer told TOI, “There are many nylon spinners located near Surat who either buy caprolactum from the GSFC to produce nylon chips or import these chips from China and Taiwan. Recently, due to shortage of caprolactum and importing chips from Taiwan too is hampered they announced a major shutdown of a month’s time.”
Agarwal further said that even the GSFC informed their capro buyers of cutting supplies by 25%. Another factor adding to price rise is the skyrocketing of container shipping charges which has risen almost by eight times due to shortage of vessels and containers, he added. Surces stated that nylon fabric manufacturers are struggling to increase fabric prices owing to poor demand in the market.