Cotton yarn eases in north India as demand low amid festival season

The Ludhiana market has experienced a decline in cotton yarn prices, with a notable drop of ₹2-3 per kg. Trade sources attribute this slump to lacklustre retail sales of garments in domestic markets. A trader from the Ludhiana market, speaking to Fibre2Fashion, said, "Mills and stockists are under pressure to clear their inventory, even at lower prices. Traders and stockists have been compelled to sell their stock at a loss, as they see no prospects for recovery in the near future." 

In Ludhiana, 30 count cotton combed yarn was sold at ₹259-269 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹249-259 per kg and ₹254-264 per kg respectively; and carded yarn of 30 count was noted at 239-244 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Delhi market has also seen a declining trend, driven by weak demand from the downstream industry. Prices have dropped by ₹5 per kg, as festival demand has yet to pick up. Optimism is waning as Diwali rapidly approaches. A trader from the Delhi market told F2F, "The market has received a poor response from the downstream industry." 

In Delhi, 30 count combed yarn was traded at ₹260-265 per kg (GST extra), 40 count combed at ₹290-295 per kg, 30 count carded at ₹235-240 per kg and 40 count carded at ₹265-270 per kg, as per TexPro. 

The Panipat recycled yarn market continues to exhibit a weaker trend, driven by low demand for home furnishing products. Despite this, millers are unwilling to offer lower prices, believing that yarn prices have already hit rock bottom. A trader opined that consumers purchase home furnishings only when they have surplus money, viewing them not as necessities but as luxuries. 

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹74-78 per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹49-52 per kg, 20s recycled PC yarn (Grey) at ₹90-95 per kg and 30s recycled PC yarn (Grey) at ₹133-142 per kg. However, cotton comber prices were noted to ₹119-120 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹72-73 per kg. 

North India's cotton market showed a mixed trend, influenced by increased purchasing from spinning mills. Prices fell by ₹500 per candy of 356 kg in lower Rajasthan, while they saw a slight rise in Punjab and Haryana. Traders cite quality variation as a factor affecting prices; lower-quality cotton drove down prices in lower Rajasthan. In Shri Ganganagar, the natural fibre traded at lower rates than in the Bikaner line due to its poor quality. 

Spinning mills are actively seeking new deals. Cotton arrival in north India was noted at 27,000 bales of 170 kg, with state-wise contributions as follows: Punjab 3,000 bales, Haryana 8,000 bales, upper Rajasthan 8,000 bales, and lower Rajasthan 8,000 bales. Cotton prices ranged from ₹5,700-5,775 per maund of 37.2 kg in Punjab, ₹5,650-5,750 in Haryana, and ₹5,550-5,700 in upper Rajasthan. In lower Rajasthan, cotton was priced between ₹55,000-56,500 per candy of 356 kg. 

ALCHEMPro News Desk (KUL)