Consistent demand keeps cotton yarn prices steady in north India

The Panipat market has witnessed strong demand for winter garments and blankets as temperatures are expected to drop further in the coming weeks. Traders have indicated that winter garments are helping to support recycled yarn prices at their current levels. However, there is a noticeable slowdown in demand for home furnishing products.

The Ludhiana market has seen regular demand for cotton yarn. Spinning mills are attempting to increase prices, anticipating higher demand in the upcoming weeks. A trader from the Ludhiana market told Fibre2Fashion, "Summer garment manufacturing is picking up gradually. Cotton garments will see higher demand in the coming season. Mills are consistently ignoring the recent fall in cotton prices as they expect higher demand from the fabric and garment industry." Cotton yarn prices have maintained their previous levels.

In Ludhiana, 30 count cotton combed yarn was sold at ₹257-267 (approximately $3.03-3.15) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹247-257 (approximately $2.92-3.03) per kg and ₹252-262 (approximately $2.97-3.09) per kg, respectively; and carded yarn of 30 count was noted at ₹237-242 (approximately $2.80-2.86) per kg today, according to trade sources.

The Delhi market also experienced higher than average demand for cotton yarn. However, the recent fall in cotton prices has tempered buying enthusiasm. Market sources suggest there is little likelihood of a decline in cotton yarn prices in the coming weeks. Prices may see an upside if cotton continues to rise. Today, cotton prices rebounded after several days of declines.

In Delhi, 30 count combed knitting yarn was traded at ₹260-262 (approximately $3.07-3.09) per kg (GST extra), 40 count combed at ₹282-290 (approximately $3.33-3.42) per kg, 30 count carded at ₹237-239 (approximately $2.80-2.82) per kg, and 40 count carded at ₹262-265 (approximately $3.09-3.13) per kg today.

North India is set to experience extreme cold in the coming weeks as temperatures will dip to single digits. This is supporting demand for blankets and winter garments. Recycled yarn and its raw materials are benefitting from the current winter season. However, this has not driven yarn prices upward as demand from the home furnishing segment remains very slow. Traders have stated that overall demand for recycled yarn is sluggish as the demand for winter garments has not offset the lower buying in the home furnishing segment.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.92-0.97) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.63-0.66) 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 $1.53-1.59) per kg. Cotton comber prices were noted at ₹100-102 (approximately $1.18-1.20) per kg and recycled polyester fibre (PET bottle fibre) at ₹80-82 (approximately $0.95-0.97) per kg today.

In North India, cotton prices bounced back after a continued fall in the last couple of days. Prices increased by ₹30-40 per maund of 37.2 kg. The natural fibre had lost ₹70-80 in the previous sessions. Government buying at minimum support price (MSP) and recovery in ICE cotton helped the prices recover in the local markets. According to a trader, the Cotton Corporation of India (CCI) is buying around 20-25 per cent of the seed cotton that has arrived in the region. Therefore, its prices are hovering near the MSP.

North India's cotton arrival was 18,300 bales of 170 kg, comprising 800 bales in Punjab, 4,500 bales in Haryana, 5,500 bales in upper Rajasthan, and 7,500 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,620 to ₹5,630 (approximately $66.32-66.44) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,620 to ₹5,630 (approximately $66.32-66.44). In upper Rajasthan, cotton was priced between ₹5,610- ₹5,630 (approximately $66.21-66.44) per maund. In lower Rajasthan, it was priced at ₹53,400 to ₹54,400 (approximately $630.20-642.00) per candy of 356 kg. Seed cotton was priced at ₹7,100-7,500 (approximately $83.79-88.51) 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)