Cotton yarn prices remain stable in north India despite weak demand

Cotton yarn prices remained stable amid slow demand in the Delhi market. There were no positive signals from either the domestic or export markets. Cotton yarn demand slowed down following Bangladesh’s land border ban. On the US front, garment exporters are still focused on renegotiating and finalising previous orders. Domestic demand was also limited as north India’s summer demand had already been met. A trader from the Delhi market told Fibre2Fashion, “Buyers are reluctant to book large quantities of cotton yarn. They are not confident about buying from the downstream industry. Everyone is trying to hold cash instead of stocking raw materials.”

In Delhi, 30 count combed knitting yarn was traded at ₹260-261 (approximately $3.05-3.06) per kg (GST extra), 40 count combed at ₹285-286 (approximately $3.34-3.35) per kg, 30 count carded at ₹234-236 (approximately $2.74-2.77) per kg, and 40 count carded at ₹259-261 (approximately $3.04-3.06) per kg today.

Cotton yarn prices were also under pressure in Ludhiana. While cotton prices are rising, mills are unable to pass on the increased cost of production. The market remains concerned about the Bangladesh issue. According to market sources, the lifting of cotton yarn is decreasing regularly. Buyers are becoming increasingly cautious about fresh purchases. The market is waiting for a positive signal from the US on the tariff issue.

In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 (approximately $3.03-3.14) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 (approximately $2.91-3.03) per kg and ₹253-263 (approximately $2.97-3.08) per kg, respectively; and carded yarn of 30 count was noted at ₹238-243 (approximately $2.79-2.85) per kg today, according to trade sources.

India’s home textile hub, Panipat, saw gains in cotton comber prices due to rising prices of the natural fibre. Cotton comber increased by ₹2 per kg in the market. Cotton prices are rising due to slow supply and limited availability. However, recycled polyester fibre eased by ₹1 per kg after a price cut in virgin polyester fibre. Recycled yarn prices did not see significant movement. Trade sources mentioned that the market is facing tight payment conditions and slow demand from both the domestic and export markets. Domestic demand for finer counts of recycled PC yarn was slightly better due to seasonal demand for bed sheets in northern states. However, exporters are not buying recycled yarn due to uncertainty regarding export demand for finished products.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (approximately $0.88-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹52-55 (approximately $0.61-0.65) per kg, 20s recycled PC yarn (Grey) at ₹95-99 (approximately $1.11-1.16) per kg and 30s recycled PC yarn (Grey) at ₹128-134 (approximately $1.50-1.57) per kg. Cotton comber prices were noted at ₹108-110 (approximately $1.27-1.29) per kg and recycled polyester fibre (PET bottle fibre) at ₹77-79 (approximately $0.90-0.93) per kg today.

In north India, cotton prices continued to rise due to stronger ICE cotton and a shortage of supply in the domestic market. Prices increased by ₹20-30 per maund of 37.2 kg. Cotton yarn prices rose by around 5-7 per cent in the last 8-10 days as spinning mills struggled to get cotton supplies. Trade sources said that ICE cotton eased today after gains on Wednesday, but market sentiments remained positive in the foreign market. The shortage of cotton supply was another reason for the price rise. While the Cotton Corporation of India (CCI) has large stocks, small buyers are unable to purchase cotton due to quantity limits and strict payment conditions.

North India’s cotton arrival was 1,700 bales of 170 kg, comprising 100 bales in Punjab, 800 bales in Haryana, 500 bales in upper Rajasthan, and 300 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,730 to ₹5,740 (approximately $67.20-67.32) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,670 to ₹5,700 (approximately $66.50-66.85). In upper Rajasthan, cotton was priced between ₹5,740 and ₹5,760 (approximately $67.32-67.55) per maund. In lower Rajasthan, it was priced at ₹54,500 to ₹55,700 (approximately $639.16-653.23) 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)