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North Indian spinners benefit from weak rupee, cotton yarn stable

The yarn market is consistently observing slow demand as the market faces slow payment movement. Traders expect that payment conditions may improve in the second half of the current February, as buyers will be able to carry forward payments due to small and micro enterprises to the next fiscal without any tax implications. The Panipat market also noticed a slow demand for recycled yarn as the usual summer demand for bed sheets did not pick up. Cotton comber and recycled polyester fibre were also traded at previous levels.

The Ludhiana market noticed slow demand from the downstream industry. Cotton yarn prices were stable in the market. Mills have shifted their focus towards the export market as they have better margins following the depreciation of the Indian rupee against the US dollar. A trader from the Ludhiana market told Fibre2Fashion, “Cotton yarn demand remained slow in the domestic market; therefore, mills are not able to hike rates. Spinners wanted to sell maximum production in the export market due to the falling rupee. They can improve their margins.”