North Indian cotton yarn trade slows on US tariff concerns

Cotton yarn prices rose by ₹2 per kg in the Delhi market, but overall trade remained limited. A trader from Delhi told Fibre2Fashion, “Buyers are inactive in terms of fresh buying. They are holding off until July 9, when reciprocal tariffs are expected to come into effect at US ports if the extension is not granted and the India–US trade deal is delayed. US buyers may place only limited orders if the tariffs are reinstated after this key date.” India’s firm position on the deal terms indicates a likely delay. Despite the weak market sentiment, mills are raising their selling prices for cotton yarn due to the steady rise in cotton prices.

In Delhi, 30 count combed knitting yarn was traded at ₹257-258 (~$2.99-3.00) per kg (GST extra), 40 count combed at ₹282-283 (~$3.28-3.29) per kg, 30 count carded at ₹231-233 (~$2.68-2.71) per kg, and 40 count carded at ₹256-258 (~$2.98-3.00) per kg today.

In contrast, the Ludhiana market remained steady with limited buying activity. According to market sources, buyers are only purchasing yarn to meet immediate requirements. Uncertainty surrounding downstream demand and liquidity constraints has discouraged further buying.

In Ludhiana, 30 count cotton combed yarn was sold at ₹255-265 (~$2.99-3.10) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹245-255 (~$2.87-2.99) per kg and ₹250-260 (~$2.93-3.05) per kg, respectively; and carded yarn of 30 count was noted at ₹235-240 (~$2.75-2.81) per kg today, according to trade sources.

The recycled yarn market in Panipat also experienced weak demand from the consumer industry. Although foreign buyers usually place orders for home textiles ahead of the pre-winter season, they remain cautious due to tariff-related uncertainty. Prices for recycled yarn and raw materials remained stable, but demand remained subdued.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (~$0.88-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹60-65 (~$0.70-0.76) per kg, 20s recycled PC yarn (Grey) at ₹101-103 (~$1.18-1.20) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (~$1.52-1.57) per kg. Cotton comber prices were noted at ₹98-101 (~$1.14-1.18) per kg and recycled polyester fibre (PET bottle fibre) at ₹75-79 (~$0.88-0.93) per kg today.

In north India, cotton prices continued to rise on the first day of the week, increasing by ₹20–30 per maund of 37.2 kg over the past couple of days. Traders said the Cotton Corporation of India (CCI) is selling cotton via an auction system, but strict conditions limit access. Private stockists and ginning units have limited availability, pushing prices up beyond CCI’s auction base rate, which is between ₹54,000 and ₹55,000 per candy of 356 kg.

North India’s cotton arrivals reduced to negligible. Total arrival will be more than 100 bales in the entire region. Stocked cotton is being traded in north India. Cotton prices in Punjab ranged from ₹5,880 to ₹5,900 (~$67.37–67.49) per maund of 37.2 kg; in Haryana, ₹5,630–5,700 (~$65.61–66.44); in upper Rajasthan, ₹5,750–5,930 (~$67.37–69.13). In lower Rajasthan, prices stood at ₹54,700–₹56,200 (~$638.57–656.15) 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)