Bearish trend in north India's cotton yarn, prices down in Ludhiana

Market experts noted that spinning mills were reluctant to sell cotton at lower prices, providing an opportunity for stockists and traders to sell their stocks for profit booking. Meanwhile, buyers were hesitant about fresh bookings amid concerns regarding payment rules, and the government has not yet offered any relief. If a buyer purchases cotton yarn from micro and small manufacturers and carries forward the outstanding amount to the next fiscal, they may face income tax implications.

In Ludhiana, the price of cotton yarn eased by ₹2 per kg. A trader from the Ludhiana market informed Fibre2Fashion, "Buyers were not keen on fresh purchases to avoid payment liabilities for micro and small enterprises beyond March 31 this year. The government has not provided any relief regarding this payment rule. Stockists were active in selling their stock for profit booking."

In Ludhiana, 30 count cotton combed yarn was selling for ₹275-285 (approximately $3.32-3.44) per kg (inclusive of GST); 20 and 25 count combed yarn were trading at ₹264-275 (approximately $3.19-3.32) per kg and ₹271-281 (approximately $3.27-3.39) per kg, respectively; and 30 count carded yarn was noted at ₹255-262 (approximately $3.08-3.16) per kg today, as per Fibre2Fashion's market insight tool TexPro.

However, cotton prices remained stable in the Delhi market. A Delhi-based trader told F2F, "There was average demand which supported the prices at the current level. Buyers were not very comfortable with the payment conditions. The entire textile value chain is facing tight payment flow due to the new rule." In this market, 30 count combed yarn was trading at ₹275-280 (approximately $3.32-3.38) per kg (GST extra), 40 count combed at ₹300-305 (approximately $3.62-3.68) per kg, 30 count carded at ₹250-255 (approximately $3.02-3.08) per kg, and 40 count carded at ₹277-280 (approximately $3.25-3.38) per kg today, according to TexPro.

In Panipat, the recycled yarn market also observed a bearish tone as demand continued to wane. Nevertheless, mills were not prepared to lower prices to stimulate buying. Traders mentioned that the home textile sector is under pressure from both demand and supply sides, currently experiencing a seasonal slowdown in demand for home furnishing products. In Panipat, 10s recycled PC yarn (Grey) was trading at ₹76-80 (approximately $0.92-0.97) per kg (GST paid), with other varieties and counts like 10s recycled PC yarn (Black) at ₹51-54 (approximately $0.62-0.66) per kg, 20s recycled PC yarn (Grey) at ₹88-93 (approximately $1.06-1.12) per kg, and 30s recycled PC yarn (Grey) at ₹133-142 (approximately $1.61-1.72) per kg. Cotton comber prices were noted at ₹115-117 (approximately $1.39-1.41) per kg. Recycled polyester fibre (PET bottle fibre) was priced at ₹71-73 (approximately $0.86-0.88) per kg today, as per TexPro.

North India's cotton prices surged further on the back of stronger ICE cotton. The natural fibre traded today at ₹50-75 (approximately $0.60-0.91) per maund of 37.2 kg higher. Mills were also purchasing cotton for restocking in the coming months. Lower arrivals in north India supported the price increase in cotton, with arrivals decreasing from 13,000 bales to 12,000 bales of 170 kg. The market is responding to global cotton price trends.

Today's arrivals were recorded at 12,000 bales, each weighing 170 kg. The state-wise breakdown of arrivals included 1,000 bales from Punjab, 4,000 bales from Haryana, 4,000 bales from upper Rajasthan, and 3,000 bales from lower Rajasthan. In Punjab, cotton prices ranged from ₹6,000 to ₹6,050 (approximately $72.47-73.07) per maund of 37.2 kg, while in Haryana, the prices varied from ₹5,950 to ₹6,050 (approximately $71.86-73.07) per maund. In upper Rajasthan, the cotton was priced between ₹5,900 and ₹6,100 (approximately $61.26-73.67) per maund. Bikaner line cotton was sold for ₹6,100 to ₹6,175 (approximately $71.67-74.58) per maund. In lower Rajasthan, the cotton was priced at ₹57,700 to ₹59,700 (approximately $696.88-721.03) per candy of 356 kg.

Disclaimer: The prices in this article are for guidance only. Readers are recommended to do their own research before making any decisions. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

ALCHEMPro News Desk (KUL)