← Business Metric: Industry Specific (Industrials & Materials) (all topics)
Spread - POY to textured yarn
What it is
Drawn textured yarn is made by texturising partially oriented yarn; twisting, covering and dyeing add further steps. Each stage earns a conversion spread over the input polymer or fibre
The base is a fragmented cluster industry, and power is a major cost
Impact on industries
- Conversion spread economics with no pricing power on either side - POY is petrochemical-priced and yarn sells into a fragmented competitive market
- Power cost intensity means competitiveness depends on tariffs and captive generation rather than on process efficiency alone
- Specialty, dyed and covered yarns escape commodity pricing, and migration up the value-added ladder is the sector's main margin strategy
- Fragmented cluster capacity can be added quickly, capping pricing - the same conversion-spread pattern as cotton spinning and cold rolling
Industries affected
Textile-MMF Yarn Spinning, Texturising & Processing-Established (A/B)
Textile-MMF Yarn Spinning, Texturising & Processing-Micro/SME & Shells
Textile-Man-made Fibre & Polymer Producers
Textile-Integrated/Composite Mills-Established (A/B)
Textile-Integrated/Composite Mills-Micro/SME & Shells
Power T&D