Cotton yarn demand bearish in north India amid tariff uncertainty

The Ludhiana market witnessed poor demand for cotton yarn, although prices did not show a downward trend. A trader from Ludhiana told Fibre2Fashion, “Both domestic and export demand for cotton yarn remained weak. However, export demand allowed mills to hold prices at current levels. Garment export orders are still insufficient to drive demand for fabric and yarn.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 (~$3.01-3.12) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 (~$2.89-3.01) per kg and ₹253-263 (~$2.95-3.07) per kg, respectively; and carded yarn of 30 count was noted at ₹238-243 (~$2.77-2.83) per kg today, according to trade sources.

The Delhi market also saw weak demand for cotton yarn, but prices remained stable for most counts and varieties. According to a trader, cotton yarn failed to find support from the downstream industry. He noted that expensive cotton yarn is discouraging consumption, with the industry shifting towards polyester and viscose yarn. New technologies are providing a cotton-like touch and breathability in non-cotton fabrics. Tariff-related concerns have also added to the pessimism in cotton yarn trade.

In Delhi, 30 count combed knitting yarn was traded at ₹260-261 (~$3.03-3.04) per kg (GST extra), 40 count combed at ₹285-286 (~$3.32-3.33) per kg, 30 count carded at ₹234-236 (~$2.73-2.75) per kg, and 40 count carded at ₹259-261 (~$3.02-3.04) per kg today.

India’s home textile hub, Panipat, was also experiencing poor demand for recycled yarn. The market saw very slow demand for coarse counts of recycled yarn. Traders expect demand to improve in the coming weeks as preparations begin for the festival season. Export demand for home textiles is also expected to pick up soon. However, ongoing payment issues and a labour shortage continue to contribute to sluggish demand. Cotton comber and recycled polyester fibre prices remained stable.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (~$0.87-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹52-55 (~$0.61-0.64) per kg, 20s recycled PC yarn (Grey) at ₹95-99 (~$1.11-1.15) per kg and 30s recycled PC yarn (Grey) at ₹128-134 (~$1.49-1.56) per kg. Cotton comber prices were noted at ₹105-108 (~$1.22-1.26) per kg and recycled polyester fibre (PET bottle fibre) at ₹76-80 (~$0.89-0.93) per kg today.

In north India, cotton prices declined further by ₹10 per maund (37.2 kg), following weakness in ICE cotton futures. Prices mirrored global market trends. Weak domestic demand for cotton yarn, amid uncertainty in the downstream industry, also weighed on cotton prices. Traders said spinners are reluctant to build stock during the off-season, given that the Cotton Corporation of India (CCI) holds large inventories expected to enter the market soon. Sluggish domestic and export demand for yarn and downstream products continues to affect cotton demand.

Cotton arrivals in north India totalled 750 bales (170 kg each): 500 bales in Haryana, 200 in upper Rajasthan, and 50 in lower Rajasthan. Punjab reported no fresh arrivals. Cotton prices ranged from ₹5,700–5,710 (~ $66.43–66.55) per maund in Punjab; ₹5,530–5,580 (~ $64.45–65.03) in Haryana; ₹5,690–5,740 (~ $66.31–66.90) in upper Rajasthan; and ₹53,200–54,500 (~ $620.01–635.16) per candy (356 kg) in lower Rajasthan.

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)