Demand for north Indian cotton yarn low; comber prices rise in Panipat

In the Ludhiana market, there was lower buying from the consumer industry, and cotton yarn prices remained range bound. A trader from the Ludhiana market told Fibre2Fashion, "Fabric supply is likely to increase in the coming weeks as over a thousand containers of knitting fabric will be released soon after declaration and duty settlement by concerned importers. Cotton yarn may further slow down due to increased supply of fabric in the textile value chain." Indian Finance Minister Nirmala Sitharaman had announced a duty hike on knitting fabric to restrict large imports of cheaper fabric. Following this, these containers were stuck at domestic ports. Sources also said that the higher return of winter garments in the Ludhiana market would also hurt the buying capacity of the downstream industry.

In Ludhiana, 30 count cotton combed yarn was sold at ₹260-270 (approximately $2.99-3.11) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹250-260 (approximately $2.88-2.99) per kg and ₹255-265 (approximately $2.93-3.05) per kg, respectively; and carded yarn of 30 count was noted at ₹240-245 (approximately $2.76-2.82) per kg today, according to trade sources.

Cotton yarn traded steadily in the Delhi market with prices hovering at previous levels, as there was no change in market sentiments. According to trade sources, the consumer industry remains cautious about buying as they face a cash crunch. The payment issue may continue to impact demand until the end of the current fiscal. However, the falling rupee against the US dollar provided relief to spinning mills in the export market, who are trying to hold prices on higher prospects of cotton yarn exports.

In Delhi, 30 count combed knitting yarn was traded at ₹262-263 (approximately $3.02-3.03) per kg (GST extra), 40 count combed at ₹290-291 (approximately $3.34-3.35) per kg, 30 count carded at ₹238-240 (approximately $2.74-2.76) per kg, and 40 count carded at ₹264-265 (approximately $3.04-3.05) per kg today.

India’s home textile hub, Panipat, saw a decrease of ₹1-2 per kg in recycled yarn, especially in coarse counts. However, recycled yarn of finer counts traded steadily. Traders said that finer counts witness higher demand in the summer season. Demand for coarse count recycled yarn has already decreased in recent weeks. Cotton comber gained ₹3-4 per kg in the last couple of days as export demand increased from neighbouring countries. Rising cotton prices have also supported comber prices to increase. Slow production of cotton combed yarn has also reduced the availability of its by-product, comber.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹77-80 (approximately $0.89-0.92) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.61-0.64) per kg, 20s recycled PC yarn (Grey) at ₹96-100 (approximately 1.10-1.15) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.50-1.55) per kg. Cotton comber prices were noted at ₹105-108 (approximately $1.21-1.24) per kg and recycled polyester fibre (PET bottle fibre) at ₹79-82 (approximately $0.91-0.94) per kg today.

In north India, cotton prices remained steady amid limited buying from spinning mills. ICE cotton was trading lower after having some gains. The mixed trend in global cotton prices caused slow movement in domestic trade. Traders mentioned that mills have stocks for 15 days to two months. They are not willing to secure stocks for the whole year as the Cotton Corporation of India has already built up a large stock that will be available in later months. Several large textile companies have also imported significant quantities of cotton at considerably lower prices.

North India’s cotton arrival was 9,200 bales of 170 kg, comprising 700 bales in Punjab, 2,500 bales in Haryana, 3,500 bales in upper Rajasthan, and 2,500 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,540 to ₹5,550 (approximately $63.76-63.88) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,530 to ₹5,550 (approximately $63.65-63.88). In upper Rajasthan, cotton was priced between ₹5,550- ₹5,570 (approximately $63.88-64.11) per maund. In lower Rajasthan, it was priced at ₹52,800 to ₹54,000 (approximately $607.70-621.52) per candy of 356 kg. Seed cotton was priced at ₹7,100-7,400 (approximately $81.72-85.17) per quintal of 100 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)