Cotton yarn stable in India; Red Sea crisis dampens export prospects

Cotton yarn prices have remained steady amidst average demand in the north Indian market. Traders noted that market sentiments were also affected by the Red Sea crisis, as a significant increase in freight charges diminished the prospects of cotton yarn exports. Neither exporters nor importers were willing to absorb the sudden increase in freight charges. Consequently, export demand is not expected to rise soon. 

In Ludhiana and Delhi markets, cotton yarn prices have been hovering close to previous levels. After experiencing gains earlier in the week, recycled yarn prices stabilised in the Panipat market. Traders and spinning mills are currently assessing the situation to strategise their marketing policies. 

A trader from the Ludhiana market told Fibre2Fashion, "Importers from several countries usually place orders for garment and textile imports after the long New Year holidays. However, due to the Red Sea Crisis, there are fewer orders as they are unwilling to bear the higher freight charges. Cotton yarn orders are more significantly affected due to the limited margins for both sides." 

In Ludhiana, 30 count cotton combed yarn was sold at ₹252-262 per kg (GST inclusive), 20 and 25 count combed yarn at ₹242-252 per kg and ₹247-257 per kg respectively, and 30 count carded yarn at ₹232-237 per kg, according to Fibre2Fashion's market insight tool TexPro. 

A trader from the Delhi market told F2F, "Cotton yarn prices were steady across most counts and varieties. Buyers were not very enthusiastic about new purchases. The market witnessed average demand from the downstream industry, and the weaving industry was not very keen on buying from garment manufacturers." In this market, 30 count combed yarn was traded at ₹250-255 per kg (GST extra), 40 count combed at ₹275-280 per kg, 30 count carded at ₹227-231 per kg, and 40 count carded at ₹252-255 per kg, as per TexPro. 

India's home textile hub Panipat also noted stability in recycled PC yarn. Recycled yarn and raw material had seen a rise earlier this week. According to a trade source from Panipat, there was no support from the demand for finished goods. Both exports and domestic demand were still very slow. The price rise from the supply side of raw materials may not be sustainable for long. 

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹76-80 per kg (GST paid). Other varieties and counts included 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 ₹74-78 per kg. 

North India cotton prices were stable amid weak demand and limited arrivals. Traders mentioned that cotton arrivals reduced due to the festival of Makar Sankranti. They also said that mills were very cautious in buying cotton. Today's arrival reduced to 15,000 bales of 170 kg. State-wise arrivals were noted as Punjab 2,000 bales, Haryana 5,000 bales, upper Rajasthan 5,000, and lower Rajasthan 3,000 bales. 

Cotton was priced in Punjab at ₹5,425-5,525 per maund of 37.2 kg, in Haryana at ₹5,400-5,500 per maund, and upper Rajasthan at ₹5,325-5,525 per maund. Bikaner region cotton was sold at ₹5,525-5,600 per maund. In lower Rajasthan, cotton was priced at ₹52,000-54,000 per candy of 356 kg. 

ALCHEMPro News Desk (KUL)