Cotton yarn demand slows in North India amid global concerns

The Ludhiana market observed slower demand for cotton yarn amid uncertainty regarding uptake from the downstream industry. Although cotton yarn prices remained unchanged, a trader from the Ludhiana market told Fibre2Fashion, “After last week’s price fall, sellers are not ready to reduce prices further. They are waiting for demand to improve next month. However, macroeconomic conditions in the global market are not very favourable, which may result in lower consumer spending at western retail stores.” Buyers are being cautious with new deals as they are uncertain about future demand.

In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 (approximately $3.00-3.12) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 (approximately $2.88-3.00) per kg and ₹253-263 (approximately $2.94-3.06) per kg, respectively; and carded yarn of 30 count was noted at ₹238-243 (approximately $2.77-2.83) per kg today, according to trade sources.

The Delhi market also witnessed weaker lifting of cotton yarn, but prices remained steady across all counts and varieties. A trader from the Delhi market explained that the prospects for export demand appear dim. Large retailers in the US have lowered their sales targets due to expectations of slower demand for discretionary items, including garments, at retail stores. Tariff hikes may increase inflation, leaving consumers with little or no money to spend on clothing. Export enquiries and sampling for next Christmas orders are still very slow.

In Delhi, 30 count combed knitting yarn was traded at ₹260-261 (approximately $3.02-3.03) per kg (GST extra), 40 count combed at ₹285-286 (approximately $3.31-3.33) per kg, 30 count carded at ₹234-236 (approximately $2.72-2.74) per kg, and 40 count carded at ₹259-261 (approximately $3.01-3.04) per kg today.

India’s home textile hub, Panipat, also witnessed sluggish demand for recycled yarn as the home textile sector faces a double blow of weak demand in both domestic and export markets. The market is also grappling with payment issues and labour shortage, which have further contributed to the slow buying of recycled yarn. Raw materials were traded steadily. Trade sources said buyers are not confident about export demand in the coming months. Raw material demand may improve if buyers receive indications of strong orders from other countries.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (approximately $0.87-0.91) per kg (GST paid). Other varieties and counts were noted as: 10s recycled PC yarn (Black) at ₹52-55 (approximately $0.60-0.64) per kg, 20s recycled PC yarn (Grey) at ₹95-99 (approximately $1.10-1.15) per kg and 30s recycled PC yarn (Grey) at ₹128-134 (approximately $1.49-1.56) per kg. Cotton comber prices were noted at ₹108-110 (approximately $1.26-1.28) per kg and recycled polyester fibre (PET bottle fibre) at ₹75-78 (approximately $0.87-0.91) per kg today.

In North India, there was no significant movement in cotton prices amid thin trading. Seed cotton arrivals also remained steady at lower levels. Spinning mills are looking to buy cotton from the Cotton Corporation of India (CCI) as they are not receiving adequate supply from private sellers. Trade sources said ginning mills may build limited stocks for the off-season, as they are not interested in selling at current prices. Mills and stockists expect better rates in the coming weeks if demand from the downstream industry remains steady. However, the entire textile value chain is facing uncertainty regarding demand in the coming months.

North India’s cotton arrivals totalled 750 bales (170 kg each), comprising 500 bales in Haryana, 200 in upper Rajasthan, and 50 in lower Rajasthan. Punjab reported no fresh arrivals. Cotton prices in Punjab ranged from ₹5,750 to ₹5,760 (approximately $66.86–66.98) per maund of 37.2 kg; in Haryana, ₹5,580–5,630 (approximately $64.88–65.46); in upper Rajasthan, ₹5,760–5,780 (approximately $66.98–67.21). In lower Rajasthan, prices stood at ₹54,200–₹55,300 (approximately $630.22–643.01) per candy of 356 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)