Cotton yarn trade slows in north India amid US tariff concerns

In Delhi, cotton yarn trade slowed, although prices remained stable. Fewer trade enquiries were reported. A Delhi-based trader told Fibre2Fashion, “US buyers are asking suppliers to hold shipments and production for existing export orders. They may also seek renegotiation and additional discounts. The value chain is reevaluating risks in exports to the US. The 25 per cent tariff, along with the unspecified penalty, has created ambiguity and concern across the industry.”

In Delhi, 30 count combed knitting yarn was traded at ₹259-260 (~$2.96-2.97) per kg (GST extra), 40 count combed at ₹284-285 (~$3.25-3.26) per kg, 30 count carded at ₹233-235 (~$2.67-2.69) per kg, and 40 count carded at ₹258-260 (~$2.95-2.97) per kg today.

In Ludhiana, cotton yarn also saw limited trade enquiries, and prices remained stable. Buyers were largely inactive, adopting a wait-and-watch approach. The market was already facing sluggish demand due to pressure from imports of Chinese polyester and Tencel fabric. The US tariff announcement has added to the headwinds.

In Ludhiana, 30 count cotton combed yarn was sold at ₹255-265 (~$2.92-3.03) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹245-255 (~$2.80-2.92) per kg and ₹250-260 (~$2.86-2.97) per kg, respectively; and carded yarn of 30 count was noted at ₹235-240 (~$2.69-2.75) per kg today, according to trade sources.

In Panipat, recycled yarn prices fell by ₹2–3 per kg due to lacklustre demand from the consumer industry. A sharp decline in coloured recycled yarn affected all varieties. Traders cited disruptions in transportation caused by heavy rainfall across northern India as a contributing factor to weak demand. On the other hand, recycled polyester fibre gained ₹2 per kg, driven by the recent increase in crude oil prices, which also caused virgin polyester fibre to increase. Cotton comber remained stable.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹74-77 (~$0.85-0.88) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹57-60 (~$0.65-0.69) per kg, 20s recycled PC yarn (Grey) at ₹100-102 (~$1.14-1.17) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (~$1.49-1.54) per kg. Cotton comber prices were noted at ₹100-102 (~$1.14-1.17) per kg and recycled polyester fibre (PET bottle fibre) at ₹75-79 (~$0.86-0.90) per kg today.

Cotton prices in north India also remained stable amid low offtake. Spinning mills were unable to source cotton from private ginners and stockists, resulting in thin trade. According to traders, private cotton trade is expected to remain slow until the arrival of the new crop in September. The crop has been progressing well and has benefitted from timely rains. However, late rains between mid-August and mid-September last year led to a pink bollworm infestation, which damaged the crop. This year’s harvest is expected to be healthy when it arrives in September.

North India’s cotton arrivals were negligible, and stocked cotton is being traded in north India. Cotton prices in Punjab ranged from ₹5,970–5,980 (~$68.30–68.41) per maund of 37.2 kg; in Haryana, ₹5,730–5,850 (~$65.55–66.92; in upper Rajasthan, ₹6,000–6,020 (~$68.84–68.87). In lower Rajasthan, prices stood at ₹55,300–57,300 (~$632.62–655.50) 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)