Cotton yarn prices surge in north India as ICE cotton spikes

Trade experts said that spinners are holding onto their cotton yarn reserves, having already secured substantial deals at favourable prices in the export market. Despite a stabilisation of cotton prices today following a positive uptick last week, the Panipat market has observed a downtrend in recycled polyester fibre demand, attributed to sluggish market conditions exacerbated by concerns over the new SME payment rule.

A trader from the Ludhiana market told Fibre2Fashion, "Mills have already sold a large quantity of cotton yarn, providing them with enough business comfort. They were not keen to sell their production in the domestic market. Cotton yarn market prices increased by ₹5-7 per kg in the last couple of days. Indian yarn did not see a similar rise as ICE cotton in the recent past. Domestic prices are still attractive for the export market."

In Ludhiana, 30 count cotton combed yarn was sold at ₹264-274 per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹254-264 per kg and ₹260-270 per kg, respectively; and carded yarn of 30 count was noted at ₹244-251 per kg today, according to Fibre2Fashion's market insight tool TexPro.

A Delhi-based trader told F2F, “The market noted stronger sentiments in cotton yarn. Mills were quoting higher prices after the rise in ICE cotton. They expected further gains in cotton yarn as Indian cotton and yarn will remain attractive for the export market. The tight supply-driven positive trend in cotton yarn may continue for the next couple of days.” In this market, 30 count combed yarn was traded at ₹265-268 per kg (GST extra), 40 count combed at ₹288-294 per kg, 30 count carded at ₹246-262 per kg, and 40 count carded at ₹272-277 per kg today.

India’s home textile hub, Panipat, saw a declining trend in recycled polyester fibre due to slow demand from the downstream industry. Traders said that farmers’ unrest dented sentiments in the production of the home textile value chain. The payment crisis was the direct cause for the decline of ₹2-3 per kg in recycled polyester fibre. However, cotton comber and recycled yarn of various prices remained steady.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹76-80 per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹51-54 per kg, 20s recycled PC yarn (Grey) at ₹88-93 per kg, and 30s recycled PC yarn (Grey) at ₹133-142 per kg. Cotton comber prices were noted at ₹112-114 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹70-73 per kg today, as per TexPro.

North India cotton prices further increased after stronger ICE cotton prices. Traders said that spinning mills and MNCs were buying cotton regularly. Mills were trying to build up enough stock for the coming dry months, while MNCs had to cover their selling commitments before the end of the current arrival season. Cotton yarn prices gained ₹40-50 per maund of 37.2 kg. Today’s arrival was 14,000 bales of 170 kg. State-wise arrivals were noted as Punjab 1,000 bales, Haryana 4,500 bales, upper Rajasthan 4,500, and lower Rajasthan 4,000 bales. Cotton was priced in Punjab at ₹5,625-5,675 and in Haryana at ₹5,575-5,675, upper Rajasthan at ₹5,400-5,700 per maund of 37.2 kg. Bikaner line cotton was sold at ₹5,800-5,800 per maund. In lower Rajasthan, cotton was priced at ₹53,600-55,600 per candy of 356 kg.

ALCHEMPro News Desk (KUL)