Cotton yarn prices dip in north India amid import surge; comber down

The Ludhiana market has witnessed a downturn in cotton yarn prices due to weak trade. Cotton yarn prices have declined by ₹2-3 per kg in this prominent textile hub in north India. Heavy imports of fabric and readymade garments are impacting the domestic garment market. Neighbouring exporting countries like China and Bangladesh are flooding the Indian market to compensate for their losses in Western markets in Europe and the US. Gulshan Jain, a trader from the Ludhiana market, told Fibre2Fashion, "Cheaper fabric imports have flooded the local market. The weaving and spinning industries are losing their market share to imported supplies. Market sentiments are unlikely to improve until there is a check on cheap imports." 

In Ludhiana, 30 count cotton combed yarn was sold at ₹256-266 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹246-256 per kg and ₹252-262 per kg respectively; and carded yarn of 30 count was noted at ₹236-242 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Delhi market has also observed a decline in cotton yarn prices. Prices have dropped by ₹2-3 per kg in the market, with mills and stockists feeling pressure to clear their stock. A trader from the Delhi market told F2F, "The market lacked active buyers, as the weaving industry was also experiencing slow demand from the garment industry." In this market, 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. 

Panipat's recycled yarn market has seen a decrease in raw material prices. Cotton comber and recycled polyester fibre prices have dipped by ₹2-3 per kg due to the slow production in the consumer industry. However, mills were reluctant to reduce recycled yarn prices. The home furnishing market has also been flooded with cheaper imported products, which is a key reason for the sluggish demand in the upstream value chain. 

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹74-78 per kg (GST Paid). Other varieties and counts were noted as 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 ₹117-118 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹70-71 per kg. 

Cotton prices in north India have remained stable, with limited but consistent purchases from spinning mills. Traders have noted that cotton prices are hovering around previous levels. Mills are procuring the natural fibre regularly, but the overall demand is insufficient to bolster market prices. Despite an increase in ICE cotton, domestic cotton prices have failed to find support. Traders believe that the direction of cotton prices is influenced by the domestic supply and demand scenario. 

In north India, cotton arrivals have reached 28,000 bales, each weighing 170 kg. The breakdown by state is as follows: Punjab - 3,000 bales, Haryana - 8,000 bales, upper Rajasthan - 8,000 bales, and lower Rajasthan - 8,000 bales. Cotton prices in Punjab are ranging from ₹5,650 to ₹5,750 per maund (equivalent to 37.2 kg). In Haryana, prices range from ₹5,630 to ₹5,740 per maund. In upper Rajasthan, the prices vary from ₹5,450 to ₹5,625 per maund. The natural fibre was priced at ₹54,700 to ₹56,200 per candy (equivalent to 356 kg) in lower Rajasthan. Notably, cotton is trading ₹100-200 per maund higher in the Bikaner region compared to the Sri Ganganagar belt due to better quality. 

ALCHEMPro News Desk (KUL)