Pakistan : Polyester Staple Fibre Prices May Drop Further

Prices of polyester staple fibre may further come down as world prices have declined in the wake of significant drop in petroleum products prices.

Industry sources said that although PSF prices have come back to the original level of Rs 60 per kg but the world prices are still much lower than the local prices.

Last week, PSF price was 80 cents per kg, which translates into Rs 47 per kg.

The government has imposed 20 percent duty on import of PSF to protect the local manufacturers.

Even if the 20 percent duty is included in the imported PSF price, the cost, along with transportation and other charges, comes at Rs 58 per kg.

Industry sources said in the light of declining world prices, a slight reduction in the local PSF price is possible.

The manufacturers of PSF had indicated early this year that production might be increased to fill the gap expected to emerge from the shortfall in cotton production this year.

Textile millers said the lowering of PSF prices would help them increase its use as substitute for cotton.

They said that fall in the PSF prices would help the textile industry to use maximum PSF which is a very good alternative, specially when raw cotton is much higher in the world market compared to last year.

It was earlier decided by the manufacturers of manmade fibres, including PSF, filament yarn, acrylic and viscose, to increase their share to 32 percent in 2003 from 25 percent of last year's total consumption of these fibres.