Cotton yarn demand slumps in north India; recycled yarn up in Panipat

Cotton yarn prices fell further by ₹2 per kg in the Delhi market. Demand remained weak due to the uncertainty surrounding garment exports to the US. A trader from Delhi told Fibre2Fashion, “Importers and exporters each had to bear a 5 per cent tariff when the US raised the basic tariff by 10 per cent. If the trade deal fails, the US will impose a 26 per cent tariff, which will be a major issue for both importers and exporters. Therefore, importers are holding back new export orders, leading to reduced cotton yarn demand.”

In Delhi, 30 count combed knitting yarn was traded at ₹255-256 (~$2.98-2.99) per kg (GST extra), 40 count combed at ₹280-281 (~$3.27-3.28) per kg, 30 count carded at ₹229-231 (~$2.67-2.70) per kg, and 40 count carded at ₹254-256 (~$2.96-2.99) per kg today.

The Ludhiana market also witnessed a declining trend in cotton yarn prices. Spinning mills and stockists had to lower their offers, with rates dropping by ₹1 per kg. A trader from Ludhiana said that after the summer season, cotton yarn becomes more dependent on export demand. Domestic buyers shift to polyester as it is available at lower prices. Export demand remains unpromising for the textile value chain.

In Ludhiana, 30 count cotton combed yarn was sold at ₹255-265 (~$2.98-3.09) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹245-255 (~$2.86-2.98) per kg and ₹250-260 (~$2.92-3.03) per kg, respectively; and carded yarn of 30 count was noted at ₹235-240 (~$2.74-2.80) per kg today, according to trade sources.

The recycled yarn market in Panipat saw a steep rise in prices of recycled PC yarn (black and coloured) by ₹10–12 per kg due to the scarcity of textile waste. According to market sources, the Directorate of Revenue Intelligence (DRI) has halted large volumes of textile waste imports from Bangladesh. A trader said DRI stopped consignments at Kolkata and other ports, citing misclassification of the product by importers. However, the actual reason is not economic but political—India has tightened imports from Bangladesh due to strained bilateral relations.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (~$0.88-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹60-65 (~$0.70-0.76) per kg, 20s recycled PC yarn (Grey) at ₹101-103 (~$1.18-1.120) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (~$1.52-1.58) per kg. Cotton comber prices were noted at ₹98-101 (~$1.14-1.18) per kg and recycled polyester fibre (PET bottle fibre) at ₹76-80 (~$0.89-0.93) per kg today.

In north India, cotton prices inched up by ₹10 per maund (37.2 kg). The continued price rise in ICE cotton is influencing domestic market rates. Traders stated that prices are strengthening due to positive global market indicators. Additionally, cotton arrivals in north India are decreasing, which is another positive signal. Although availability in the open market is very limited, ginners and stockists are selling at comfortable prices.

North India’s cotton arrivals totalled 350 bales (170 kg each), comprising 200 bales in Haryana and 150 in upper Rajasthan. No fresh arrivals were reported in lower Rajasthan and Punjab. Cotton prices ranged from ₹5,740–5,750 (~$66.97–67.09) per maund in Punjab; ₹5,540–5,610 (~$64.64–65.45) in Haryana; and ₹5,690–5,810 (~$66.39–67.79) in upper Rajasthan. In lower Rajasthan, prices stood at ₹53,500–55,000 (~$624.19–641.69) 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)