Mixed trends in north Indian cotton yarn market amid slow demand

The Ludhiana market noted a steep fall of ₹5 per kg in most counts and varieties of cotton yarn. Slow demand from buyers and selling pressure on stockists and traders decreased their selling prices to clear their stocks. A trader from the Delhi market told Fibre2Fashion, "Continued imports of fabric from China and other countries are causing slow demand. Fabric demand is not slow, but it is being met with cheaper imported optional fabric.” The spinning industry is facing a very challenging time amid uncertain market conditions.

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.

However, cotton yarn prices remained unchanged in the Delhi market. According to trade sources, the market was also facing slow demand, but traders and dealers did not reduce prices as mills maintained their mill rates. The market is also facing a money crunch due to heavy stocks in the entire value chain. Cotton yarn demand did not improve this month, but there are expectations of better sentiments in the coming months.

In this market, 30 count combed knitting yarn was traded at ₹266-268 (approximately $3.19-3.21) per kg (GST extra), 40 count combed at ₹286-293 (approximately $3.43-3.51) per kg, 30 count carded at ₹241-243 (approximately $2.89-2.91) per kg, and 40 count carded at ₹266-269 (approximately $3.19-3.22) per kg today.

India’s home textile hub, the Panipat market, also noted sluggish demand. However, there was stability in recycled yarn prices. Raw materials like cotton comber and recycled polyester fibre eased by ₹1-2 per kg in the last couple of days. Market experts said that raw material prices eased as consumption reduced in the industry. However, recycled yarn prices did not ease as demand from the garment industry was supporting the segments. Cheaper garment manufacturers preferred cheaper recycled yarn after the rise in virgin yarn prices.

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 ₹103-106 (approximately $1.23-1.27) per kg and recycled polyester fibre (PET bottle fibre) at ₹76-80 (approximately $0.91-0.96) per kg today.

In north India, cotton prices regained by ₹50 per maund of 37.2 kg after a decline late last week. The market was influenced by strong buying in cotton futures. Traders said that cotton prices increased in the middle of last week but eased later. However, they recovered on the first day of this week. Cotton prices are facing contradictory pressures. Stockists and ginners are trying to hold their stock as they expect higher prices in August and September, while spinning mills are facing slow demand from the downstream industry and want to buy cotton if the prices come down.

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 ₹5,925 to ₹5,950 (approximately $70.82-71.12) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,825 to ₹5,850 (approximately $69.62-69.92). In upper Rajasthan, cotton was priced between ₹5,650- ₹5,950 (approximately $67.53-71.12) per maund. Bikaner line cotton sold for ₹5,925 to ₹6,025 (approximately $70.82-72.01) per maund. In lower Rajasthan, cotton was priced at ₹55,200 to ₹58,000 (approximately $659.78-693.25) 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)