Global demand further drives up cotton yarn prices in north India

There has been a surge in yarn export inquiries from foreign buyers, with Chinese importers expressing particular interest in Indian cotton yarn. Moreover, the price of comber, a byproduct of the cotton industry, also experienced an uptick in the Panipat market due to the rising cost of cotton. However, the demand for recycled PC yarn remained stagnant. 

The Ludhiana market continues to experience an upward trend in cotton yarn prices. A surge in domestic and global demand has prompted a price increase of ₹3-4 per kg. A local trader told Fibre2Fashion, “Chinese buyers have been actively seeking cotton yarn from the Indian market, particularly following the rise in ICE cotton. The growing cost of cotton has led spinning mills to raise their yarn prices, a move further buoyed by robust domestic demand.” 

In Ludhiana, 30 count cotton combed yarn was sold at ₹260-270 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹250-260 per kg and ₹255-265 per kg, respectively. Carded yarn of 30 count was noted at ₹240-245 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Delhi market also recorded a ₹2 per kg gain in cotton yarn prices, driven by increased purchases from domestic buyers. A trader from the Delhi market told F2F, "Mills have been raising yarn prices due to the rise in cotton costs. Export orders have also contributed to this trend, supporting market sentiment. Furthermore, the weaving industry has been consistently purchasing yarn." In this market, 30 count combed yarn was traded at ₹266-268 per kg (GST extra), 40 count combed at ₹296-298 per kg, 30 count carded at ₹238-242 per kg and 40 count carded at ₹268-272 per kg, as per TexPro. 

The Panipat market also observed an upward trend in cotton comber prices, mirroring the trend in yarn prices. Comber prices increased by ₹4-6 per kg. However, both recycled polyester fibre and recycled PC yarn prices remained steady. Trade sources suggested that if comber prices continue to rise, recycled PC yarn might provide some relief. Recycled yarn prices have remained stable for quite some time due to poor demand. 

In Panipat, 10s recycled PC yarn (grey) was traded at ₹77-82 per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (black) ₹50-54 per kg, 20s recycled PC yarn (grey) at ₹92-97 per kg and 30s recycled PC yarn (grey) at ₹135-145 per kg. Comber prices was hovering at ₹126-128 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹72-74 per kg. 

North Indian cotton prices have further increased due to a stronger ICE cotton index and heightened demand from spinning mills. According to trade sources, ICE cotton reached a level of 88 US cents per pound, a development that has bolstered Indian cotton prices. These same sources also indicate that as global cotton prices rise, Indian cotton will become increasingly attractive in the global market. Mills are also purchasing cotton on a regular basis. Compared to last week, cotton prices have risen by ₹50-75 per maund (37.2 kg). The natural fibre has been trading at ₹6,000-6,100 per maund in Punjab, ₹5,850-5,950 per maund in Haryana, and ₹6,125-6,250 per maund in upper Rajasthan. The commodity is also being sold for ₹56,000-58,000 per candy (356 kg) in lower Rajasthan. 

ALCHEMPro News Desk (KUL)