India Prepares for Surge in Polyester Filament Yarn Imports from China Amidst BIS Certification Delay
Following the Central Government's July 17 notification, Indian importers have wasted no time in placing orders with Chinese manufacturers. Over the last couple of days, an astonishing 3,000 containers of PFY orders have been placed, amounting to a volume exceeding 70kt.
Surat : India is gearing up for a significant increase in imports of Polyester Filament Yarn (PFY) from China as the Indian government has postponed the Bureau of Indian Standards (BIS) certification for polyester FDY (IS:17261:2019), POY (IS 17262:2019), and PSY (IS 17265:2019) in India until October 5, 2023.
This move has opened up a three-month window, leading to a surge in inquiries from Indian players for export orders of PFY from their Chinese counterparts.
Following the Central Government’s July 17 notification, Indian importers have wasted no time in placing orders with Chinese manufacturers. Over the last couple of days, an astonishing 3,000 containers of PFY orders have been placed, amounting to a volume exceeding 70kt. This surge in demand is indicative of the immediate impact of the postponed BIS certification, creating a window of opportunity for Chinese PFY manufacturers.
Data collected from China’s customs reveals that PFY exports to India amounted to 339.2kt in June 2023, experiencing a decline of 6.2% compared to the previous month. The reduced export volume was primarily attributed to the anticipation of the BIS certification on PFY in India. However, with the delay in certification, Indian players have been quick to capitalize on the situation, resulting in a boom in import orders from China.
As the demand for PFY intensifies in India, the freight charges for shipping from Ningbo in China to Nhava Sheva in India have skyrocketed to $1000/40HQ, and industry experts predict further increase to $3000/40HQ in the coming weeks. The surge in freight charges is an additional factor that will impact the overall cost of PFY imports into India.
Polyester Filament Yarn is a vital component used in various industries, including textiles, apparel, and home furnishings. The increase in demand from India, coupled with the delayed BIS certification, has set the stage for a significant shift in trade dynamics between the two countries.
While Indian importers find new avenues to source PFY from China during this three-month grace period, local manufacturers are closely observing the developments. The delay in BIS certification may have short-term implications on the domestic PFY industry, prompting local manufacturers to strategize and innovate to remain competitive in the evolving market.
The delay in BIS certification for PFY has introduced a unique scenario in the trade relations between India and China. As the situation unfolds, stakeholders in both countries will be closely monitoring the market dynamics and its potential long-term impact on the PFY industry.