Cotton yarn stable in north India amidst summer demand anticipation

Cotton yarn prices in north India, including major trading centres like Delhi and Ludhiana, have remained stable as demand from spinning mills has not seen a significant improvement. However, traders are optimistic that demand will pick up soon with the rise in summer garment demand. Domestic and foreign buyers are expected to increase their purchases as retail demand is projected to grow. Panipat's home textile sector has also experienced a slowdown in production due to the anticipation of higher demand. Prices for recycled yarn and cotton combers have remained unchanged. 

In the Ludhiana market, there has been no notable movement in cotton yarn prices, and signs of improvement are yet to emerge. A trader from Ludhiana told Fibre2Fashion, "Cotton yarn prices have remained stable, and it may take some time to see an improvement. In contrast, polyester cotton yarn prices have already risen due to increased demand for summer garments." 

In Ludhiana, 30 count cotton combed yarn was sold at ₹250-260 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹240-250 per kg and ₹245-255 per kg respectively; and carded yarn of 30 count was noted at 230-235 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Delhi market has also witnessed stability in cotton yarn prices, with average demand from downstream industries. A trader from Delhi told F2F, "The market may need to wait a while longer. There is hope for increased buying from downstream industries, and domestic and foreign buyers will need to replenish their inventories." 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. 

The recycled yarn market in Panipat has seen steady demand, which has kept prices stable. Cotton combers have also been traded at previous levels. According to trade sources, recycled yarn prices have already reached their bottom line, so mills and stockists are reluctant to offer lower prices and are trying to maintain prices at their current levels. 

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹74-78 per kg (including GST). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹49-52 per kg, 20s recycled PC yarn (Grey) at ₹85-90 per kg, and 30s recycled PC yarn (Grey) at ₹133-142 per kg. However, cotton comber prices were noted at ₹112-114 per kg, and recycled polyester fibre (PET bottle fibre) was priced at ₹67-70 per kg. 

North India's cotton prices have weakened due to poor demand and quality concerns, with a price drop of ₹50-75 per maund of 37.2 kg in northern states. Weak global market sentiments and quality issues with domestic supplies have reduced buyers' interest, leading to reluctance in making new deals. Approximately 50 per cent of cotton supplies are of poor quality, attributed to untimely rains and the pink bollworm attack. Poor RD (Roughage Dispenser) and shorter cotton fibre length have further deterred buyers. 

Total arrivals in north India have decreased to 22,500 bales of 170 kg, with arrivals noted in Punjab (2,500 bales), Haryana (7,000 bales), upper Rajasthan (7,000 bales), and lower Rajasthan (6,000 bales). Cotton prices in Punjab range from ₹5,225 to ₹5,325, while in Haryana, they are between ₹5,200 and ₹5,325 per maund of 37.2 kg. However, Shri Ganganagar line cotton traded ₹100-125 per maund lower due to poor quality. In lower Rajasthan, cotton was priced at ₹52,800-53,800 per candy of 356 kg. 

ALCHEMPro News Desk (KUL)