Cotton yarn prices in Ludhiana rise amid surging PC yarn demand

The recent rise in polyester-cotton (PC) yarn prices has buoyed cotton yarn prices in the Ludhiana market, as the price gap between these two yarn varieties has narrowed. Specifically, cotton yarn prices edged up by ₹1 per kilogram. The spike in PC yarn prices, driven by robust demand for summer garments in the domestic market, has subsequently enhanced sentiment in the cotton yarn sector. Despite this, the Delhi market has seen stable cotton yarn prices, with no marked improvement in the garment export segment. The weaving industry remains cautious in purchasing cotton yarn, not anticipating an immediate uptick in fabric uptake from the garment industry. 

A Ludhiana market trader, speaking to Fibre2Fashion, commented, “Cotton yarn prices have risen, buoyed by the recent surge in PC yarn prices. However, it's important to note that PC yarn prices had risen from a very low base, having been traded below production cost, whereas cotton yarn has been trading at better prices recently.” 

In Ludhiana, 30 count cotton combed yarn was sold at ₹253-263 per kilogram (including GST); 20 and 25 count combed yarn traded at ₹243-253 and ₹248-258 per kilogram respectively; and 30 count carded yarn was priced at ₹233-238 per kilogram, according to Fibre2Fashion’s market insight tool TexPro. 

A Delhi market trader told F2F, “There's no sign of improvement from the export market. Cotton yarn prices have remained steady due to average demand, and the weaving industry is not confident about a surge in demand from the garment sector.” In this market, 30 count combed yarn was traded at ₹250-255 per kilogram (GST extra), 40 count combed at ₹275-280 per kilogram, 30 count carded at ₹227-231 per kilogram, and 40 count carded at ₹252-255 per kilogram, as per TexPro. 

In Panipat, India’s home textile hub, the mood was bearish amidst muted domestic and export demand. Recycled yarn prices showed stability, with a trader noting the lack of positive momentum in the recycled yarn trade. In this market, 10s recycled PC yarn (Grey) was traded at ₹74-78 per kilogram (GST included). Other varieties included 10s recycled PC yarn (Black) at ₹49-52 per kilogram, 20s recycled PC yarn (Grey) at ₹85-90 per kilogram, and 30s recycled PC yarn (Grey) at ₹133-142 per kilogram. Prices for cotton comber were ₹112-114 per kilogram and recycled polyester fibre (PET bottle fibre) was noted at ₹72-74 per kilogram. 

North Indian cotton prices held steady amid limited buying from spinning mills. Traders reported that mills were purchasing cotton in small quantities, which was sufficient for the current level of arrivals. Cotton arrivals are expected to start declining next month, with daily arrivals anticipated to be around 20,000 bales of 170 kilograms. 

Today’s arrivals were noted at 20,500 bales, with state-wise distributions as follows: Punjab 2,500 bales, Haryana 6,000 bales, upper Rajasthan 6,000 bales, and lower Rajasthan 6,000 bales. Cotton prices were ₹5,425-5,525 per maund of 37.2 kilograms in Punjab, ₹5,400-5,500 in Haryana, ₹5,300-5,500 in upper Rajasthan, and ₹5,525-5,600 per maund for Bikaner region cotton. In lower Rajasthan, cotton was priced at ₹52,000-54,000 per candy of 356 kilograms. 

ALCHEMPro News Desk (KUL)