|
Domestic synthetic yarn prices stayed muted. The wholesale price index for Synthetic yarn stood at 104.60 in February 2024, unchanged on the month and witnessing a 4.74% drop compared to February 2023. The index has been falling on annual basis on a continued basis for last eleven months now. The overall sluggishness in textile demand seems to be weighing on the prices. The long term scenario for global synthetic fibres market is positive. A latest report published by IMARC Group, titled "Cellulose Fibers Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2024-2032", offers a comprehensive analysis of the industry, which comprises insights on cellulose fibers market report. The report also includes competitor and regional analysis, and contemporary advancements in the global market. The global cellulose fibers market size reached US$ 32.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 63.2 Billion by 2032, exhibiting a growth rate (CAGR) of 7.4% during 2024-2032. Cellulose fibers are natural or synthetic fibers derived from cellulose, a polysaccharide found in plant cell walls. These fibers are widely used in various industries due to their versatility, strength, and biodegradability. Natural cellulose fibers, such as cotton, linen, and hemp, are commonly used in textiles, papermaking, and construction materials.
Meanwhile, crude oil prices soared in global markets. WTI Crude Oil futures scaled up above $86 per barrel in first week of April 2024. The rally was ignited by escalating geopolitical tensions in key oil-producing regions, ongoing efforts by OPEC+ to restrain supply, and a robust outlook for energy demand. Meanwhile, OPEC+ members agreed to uphold current oil supply policies and urged some members to enhance compliance with production cuts. On the economic front, strong US economic data has boosted confidence in the outlook for the world's leading oil consumer. Rising crude oil prices could push up the cost pressures for manmade fibers producers.
IEA Raises Global Oil Demand Forecast, Lowers Supply Outlook
An improved outlook for the U.S. economy and increased bunkering is expected to boost the global oil demand this year with consumption returning to post-pandemic trends, and there is a surge in adoption of efficient electric vehicles, the International Energy Agency said in a monthly report on Thursday.
Global oil demand for this year was revised up to 1.3 million barrels per day (bpd), an upward revision of 110,000 bpd from the previous month's report. The Paris-based IEA attributed the upward revision to increased bunker fuel use caused by trade flow disruptions such as the Houti attacks on tankers in the Red Sea that led to longer shipping routes and faster vessel speeds.
Further, surging U.S. ethane demand for its petrochemical sector also support demand. However, demand growth this year is forecast to be slower than last year's 2.3 million bpd. The global supply for this year was forecast to grow by 800,000 bpd to 102.9 million bpd, including a downward adjustment to OPEC+ output. The IEA had forecast global oil supply at a record 103.8 million bpd in its February report.
Outlook:
Long term dynamics augur well for the textile sector in India as extremely supportive demographics will benefit demand trends. The government is keen on pushing up the capacity to meet this increased demand. The seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks are expected to attract Rs 70,000 crore in four-six years with 20 lakh direct and indirect employments while the PLI scheme is likely to attract investments worth Rs 25,000 crore with 2.5 lakh additional jobs, according to textiles secretary Rachna Shah. The PLI scheme for textiles sector is focused on man-made fibre (MMF) , MMF apparel and technical textiles to improve large scale manufacturing and enhancing competitiveness in the local producers.
|