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Cautious optimism persists in north Indian cotton yarn, prices up

04 Nov '24
4 min read
Cautious optimism persists in north Indian cotton yarn, prices up
Pic: Adobe Stock

Insights

  • Cotton yarn prices rose by ₹1 per kg in Ludhiana as spinning mills anticipated improved demand post-Diwali.
  • The Delhi market remained stable with limited trading after the holidays.
  • Panipat experienced subdued activity, with steady recycled yarn prices.
  • Cotton prices in north India increased due to reduced arrivals post-Diwali, influenced by delayed sowing.
North India saw an increase in cotton yarn prices, with rates rising by ₹1 per kg in the Ludhiana market, while prices remained stable in the Delhi market. Spinning mills anticipate that cotton yarn demand will improve post-Diwali, signalling that prices may have bottomed out following a prolonged decline. To enhance margins, mills raised yarn prices by ₹1 per kg. Although traders are optimistic about increased demand after the festival, they remain cautious due to limited export demand. The movement in cotton prices is expected to influence the yarn market in the coming weeks, with market experts noting that domestic demand currently outpaces export demand. In Panipat, India’s hub for home textiles, trading has been subdued with stable prices for yarn and raw materials. Activity remained low immediately after Diwali.

Cotton yarn prices rose by ₹1 per kg in the Ludhiana market as spinners quoted higher rates, with mills refraining from selling at lower prices. A trader in Ludhiana told Fibre2Fashion, “Spinning mills have increased their mill rate by ₹1 per kg as they anticipate higher demand for summer garments and are confident that the market has bottomed out before the festival.”

In Ludhiana, 30 count cotton combed yarn was priced at ₹258-268 (approximately $3.07-3.19) per kg (inclusive of GST). The 20 and 25 count combed yarns were priced at ₹248-258 (approximately $2.95-3.07) per kg and ₹253-263 (approximately $3.01-3.13) per kg, respectively. The 30 count carded yarn was noted at ₹238-243 (approximately $2.83-2.89) per kg, according to trade sources.

Meanwhile, the Delhi market witnessed stable cotton yarn prices with limited trade following the Diwali holidays. Traders expect normal trading to resume in a few days, with yarn prices contingent on cotton prices. If cotton gains value, yarn prices may also increase. However, there is little optimism for a significant rise in cotton prices during the arrival season unless the Cotton Corporation of India engages in large-scale procurement at the minimum support price (MSP).

In Delhi, 30 count combed knitting yarn was traded at ₹262-264 (approximately $3.11-3.14) per kg (GST extra), 40 count combed at ₹284-292 (approximately $3.38-3.47) per kg, 30 count carded at ₹239-241 (approximately $2.84-2.87) per kg, and 40 count carded at ₹264-267 (approximately $3.14-3.17) per kg today.

There was no notable change in prices for recycled yarn, cotton comber, or recycled polyester fibre in the Panipat market, which saw limited activity on the first day after Diwali. Traders expect normal trading to resume in a few days, with potential for increased demand for recycled yarn and fibres used in blankets and other winter garments.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.93-0.97) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.63-0.67) per kg, 20s recycled PC yarn (Grey) at ₹96-102 (approximately 1.14-1.21) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.55-1.60) per kg. Cotton comber prices were noted at ₹100-102 (approximately $1.19-1.21) per kg and recycled polyester fibre (PET bottle fibre) at ₹75-80 (approximately $0.89-0.95) per kg today.

Cotton prices in north India rose slightly after Diwali, with an increase of ₹10-20 per maund of 37.2 kg due to lower arrivals. Post-Diwali, cotton arrivals typically decline, and this year saw fewer arrivals compared to the same period last season. Farmers delayed cotton sowing to avoid pest attacks, which has pushed back the arrival timeline.

The arrival of cotton in north India dropped to 10,500 bales of 170 kg, including 500 bales in Punjab, 4,000 bales in Haryana, 3,000 bales in upper Rajasthan, and 3,000 bales in lower Rajasthan. In Punjab, cotton was priced at ₹5,680-5,690 (approximately $67.53-67.65) per maund of 37.2 kg. In Haryana, prices ranged from ₹5,670-5,680 (approximately $67.41-67.53) per maund. In upper Rajasthan, prices were ₹5,680-5,690 (approximately $67.53-67.65) per maund, while in lower Rajasthan, prices were ₹54,000-55,000 (approximately $641.98-653.87) per candy of 356 kg. Seed cotton was priced at ₹7,800-8,100 (approximately $86.83-92.78) per quintal of 100 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)

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