The price of polyester staple fiber (PSF) will be up by rupees three per kilogram to Rs 95 per kilogram from Wednesday (December 1). The increase is less by one rupee as compared to the increase in the price from Rs 90 to Rs 94 per kilogram in November. However, the increase has been attributed to the raise in the prices of raw material namely PTA in the international market. The textile industry sources anticipated if any miracle did not stop the current price spiral, the PSF price would touch the Rs 100-mark in January 2005.
Having no other option, the consumers are compelled to buy the locally-made fiber. A textile exporter said the industry could absorb the series of price increase of the fiber by slightly re-adjusting the export price after convincing the buyers of the all round price increases in the world mainly because of increase in oil prices.
The total estimated PSF consumption in the country is about 0.6 million tonne with a 10 to 15 percent increase annually.
The growth of the industry has been seriously marred by the sovereign guarantee regarding import duty provided to ICI against its investment in setting up a PTA plant in Karachi.
The industry sources said the local manufacturers of the PSF had shelved their expansion plans till 2008, when the guarantee, provided to the ICI, would expire.
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