Cotton yarn demand poor in north India, but prices rise in Ludhiana

The Ludhiana market experienced a slight rise in cotton yarn prices despite weaker demand from the downstream industry. Mills were struggling to increase yarn prices and faced a squeeze in their profit margins after the rise in cotton. Cotton yarn increased by ₹1 per kg for most varieties. A trader from the Ludhiana market told Fibre2Fashion, "Cotton yarn prices were not receiving support from weak demand, but costlier cotton has increased the cost of production for spinning mills. Therefore, mills wanted to pass on the additional cost of production to the buyers." 

In Ludhiana, 30 count cotton combed yarn was sold at ₹260-270 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹250-260 per kg and ₹255-265 per kg respectively; and carded yarn of 30 count was noted at 240-245 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

However, the Delhi market saw steady cotton yarn prices, with limited buying from the domestic weaving industry and exporters. A trader from the Delhi market informed F2F, "Demand for yarn was not encouraging. After an increase in cotton yarn prices last week, buying was further discouraged. Cotton gained ₹3-4 per kg during the last week." 

In Delhi, 30 count combed yarn was traded at ₹267-272 per kg (GST extra), 40 count combed at ₹297-302 per kg, 30 count carded at ₹237-242 per kg and 40 count carded at ₹267-272 per kg, as per TexPro. 

The Panipat market noted slower demand despite the approaching festival season, failing to boost market demand for finished goods. Consequently, the demand for recycled yarn and fabric was limited. Traders and consumer industries adopted a wait-and-watch strategy amid uncertain market conditions, and prices for recycled yarn remained unchanged. 

There was no change in the prices of recycled yarn. In Panipat, 10s recycled PC yarn (Grey) was traded at ₹77-82 per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹50-54 per kg, 20s recycled PC yarn (Grey) at ₹92-97 per kg and 30s recycled PC yarn (Grey) at ₹135-145 per kg. Comber prices were hovering at ₹125-127 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹74-76 per kg. 

North Indian cotton prices eased after a steep rise last week, with a decline in ICE cotton pulling down domestic prices. The recent increase in the price of natural fibre also deterred the spinning industry from making fresh purchases. The Haryana market saw the arrival of new cotton in limited quantities, with the north Indian states receiving 1,000 bales of cotton, each weighing 170 kg, including 400 bales of new cotton. Ginners entered clearance mode, contributing to an increased total arrival. North India recorded a total arrival of 1,200 bales. Following the easing of ICE cotton, cotton prices in the north Indian markets reduced by ₹50 per maund of 37.2 kg. Cotton was traded at ₹6,000-6,100 per maund of 37.2 kg in Punjab, ₹5,925-6,025 per maund in Haryana, and ₹6,200-6,300 per maund in upper Rajasthan. In lower Rajasthan, the natural fibre sold for ₹58,000-59,500 per candy of 356 kg. 

ALCHEMPro News Desk (KUL)