Reliance Industries raises yarn prices

MUMBAI (Makemystocks): Amidst the strong demand and the restricted supply ahead of festival season, Reliance Industries Ltd (BOM 500325) raised the prices of yarn by 2 on one kg from Wednesday.

In June, Reliance had cut polyester yarn prices by Rs 2.50 per 1 kilogram and then had retained prices for the next two months.

Hike in yarn prices follows rise in prices of key raw materials for producing polyester yarn -- purified terephthalic acid and mono ethylene glycol, traders said, but they did not detail by how much.

Rise in petrochemical prices comes as a surprise as crude oil prices have been subdued, traders said. In 2009-10 (Apr-Jun), the company -- the largest producer of polyester globally -- produced 724,000 tonne of polyester filament yarn and 597,000 tonne of polyester staple fibre.

Yarn rate for the benchmark denier including all duties is around Rs 85 per 1 kg, a trader said. Denier is a unit to measure the texture of the yarn.

Today, Reliance Industries share is trading at Rs 928 on the Bombay Stock Exchange, down 0.98% from previous close.