Cotton yarn demand weak in north India, yet prices firm up in Delhi

Cotton yarn prices remained stable in the Ludhiana market after gains earlier this week. Spinning mills are cautious in placing fresh orders, with the market facing stiff competition from Chinese polyester fabric arriving in large volumes. A trader from Ludhiana told Fibre2Fashion, “Different variants of Chinese polyester fabric are eating into the cotton yarn market. Not only is it cheaper, but it also offers better finishing and touch-feel. Chinese fabric has captured around 60 per cent of the Ludhiana market. Imported fabric is also a key reason behind the ongoing payment crisis in the cotton yarn trade.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹257-267 (~$2.97-3.09) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹247-257 (~$2.86-2.98) per kg and ₹252-262 (~$2.92-3.03) per kg, respectively; and carded yarn of 30 count was noted at ₹237-242 (~$2.74-2.80) per kg today, according to trade sources.

Cotton yarn prices rose by ₹2 per kg in the Delhi market as spinning mills hiked their selling rates, following the earlier price rise in Ludhiana. According to market sources, downstream demand remains subdued, but mills prefer to protect margins over pushing for sales. The recent rise in cotton prices has compelled mills to raise yarn prices.

In Delhi, 30 count combed knitting yarn was traded at ₹259-260 (~$3.00-3.01) per kg (GST extra), 40 count combed at ₹284-285 (~$3.29-3.30) per kg, 30 count carded at ₹233-235 (~$2.70-2.72) per kg, and 40 count carded at ₹258-260 (~$2.99-3.01) per kg today.

Recycled yarn demand also remained weak in the Panipat market. Traffic restrictions on routes to western Uttar Pradesh and other areas continue to impact yarn movement. However, the situation may ease in a day as the annual Hindu Kanwar Yatra concludes. Traders said the market is under downward pressure, with mills struggling to attract buyers. Nonetheless, demand may improve next week as festive orders for home textiles begin to pick up.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (~$0.87-0.90) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹60-65 (~$0.69-0.75) per kg, 20s recycled PC yarn (Grey) at ₹101-103 (~$1.17-1.19) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (~$1.50-1.56) per kg. Cotton comber prices were noted at ₹105-107 (~$1.21-1.24) per kg and recycled polyester fibre (PET bottle fibre) at ₹73-77 (~$0.84-0.89) per kg today.

In north India, cotton prices remained largely stable over the past few days due to limited availability and thin trade volumes. Traders said ginners and stockists hold very limited inventories. Large and mid-sized spinning mills are sourcing cotton from the Cotton Corporation of India (CCI), primarily from southern states, as CCI had limited procurement in the north.

Cotton arrivals in north India have dwindled to negligible levels. Stocked cotton is currently being traded. In Punjab, cotton prices ranged from ₹5,970-5,980 (~$69.08–69.19) per maund of 37.2 kg; in Haryana, ₹5,690–5,800 (~$65.84–67.11); and in upper Rajasthan, ₹5,980–6,000 (~$69.19–69.42). In lower Rajasthan, prices were ₹55,200–57,200 (~$638.69–661.83) per candy of 356 kg.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

ALCHEMPro News Desk (KUL)