Demand slump in north Indian cotton yarn market; prices down in Delhi

Cotton yarn prices in the Delhi market eased by ₹2 per kg due to the ongoing general slowdown in demand. The annual Kanwar Yatra also impacted demand as normal traffic was paralysed on major routes in western Uttar Pradesh. A trader from the Delhi market told Fibre2Fashion, "Mills have not reduced prices of cotton yarn. However, stockists and traders have decreased prices to encourage buying as they are facing slow demand. The Kanwar Yatra has added to the woes of the cotton yarn trade, with both buyers and sellers preferring to avoid any shipments for a week.”

In this market, 30 count combed knitting yarn was traded at ₹264-266 (approximately $3.15-3.18) per kg (GST extra), 40 count combed at ₹284-291 (approximately $3.39-3.48) per kg, 30 count carded at ₹239-241 (approximately $2.86-2.88) per kg, and 40 count carded at ₹264-267 (approximately $3.15-3.19) per kg today.

The Ludhiana market witnessed stability in cotton yarn prices as average demand continued. According to trade sources, there has been no change in market fundamentals. Mills and stockists are under pressure to clear their stocks. The Ludhiana market did not see any significant impact from the Yatra.

In Ludhiana, 30 count cotton combed yarn was sold at ₹265-275 (approximately $3.18-3.30) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹255-265 (approximately $3.06-3.18) per kg and ₹260-270 (approximately $3.12-3.24) per kg, respectively; and carded yarn of 30 count was noted at ₹245-250 (approximately $2.94-3.00) per kg today, according to trade sources.

Panipat, India's home textile hub, also noted the impact of the Kanwar Yatra on normal trade. Traders reported that large quantities of various counts and varieties of recycled yarn are shipped to various production hubs in western UP. Normal traffic is unlikely to resume before the first week of next month. Despite this, recycled yarn prices remained stable. Raw materials like cotton comber and recycled polyester fibre dropped by ₹2-4 per kg in the last couple of days.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹80-84 (approximately $0.96-1.01) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.63-0.67) per kg, 20s recycled PC yarn (Grey) at ₹94-100 (approximately 1.13-1.20) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.56-1.62) per kg. Cotton comber prices were noted at ₹97-99 (approximately $1.16-1.18) per kg and recycled polyester fibre (PET bottle fibre) at ₹75-79 (approximately $0.90-0.94) per kg today.

In north India, cotton prices further slipped by ₹25 per maund of 37.2 kg as ICE cotton touched a four-year low on Wednesday. The local cotton market was influenced by the declining trend in the global market. Traders reported very limited cotton stock in north Indian states, leading to slow trading activities. The mismatch between the price expectations of buyers and sellers also contributed to limited trade.

Today's arrivals were 500 bales of 170 kg in north India. State-wise arrivals were as follows: 400 bales in Haryana, 50 bales in upper Rajasthan, and 50 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,850 to ₹5,875 (approximately $69.89-70.19) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,750 to ₹5,775 (approximately $68.69-68.99). In upper Rajasthan, cotton was priced between ₹5,575- ₹5,875 (approximately $66.60-70.19) per maund. Bikaner line cotton sold for ₹5,850 to ₹5,950 (approximately $69.89-71.08) per maund. In lower Rajasthan, cotton was priced at ₹54,500 to ₹57,700 (approximately $651.08-689.31) 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)