North India cotton yarn demand may rise in April on cash flow boost

Although cotton prices remained unchanged in Delhi and Ludhiana during the last days of the current fiscal year 2024–25, traders reported slow to average demand from the consumer industry in both markets.

In Ludhiana, the market saw average demand and stability in cotton yarn prices. This average demand is being viewed as a positive sign amid an ongoing and unprecedented payment crisis. A trader from Ludhiana told Fibre2Fashion, “The average buying of cotton yarn despite the slow payment flow is a good sign for the market. There is a possibility that demand will rise significantly next month.”

In Ludhiana, 30-count cotton combed yarn was sold at ₹260–270 (approximately $3.03–3.15) per kg (inclusive of GST); 20 and 25-count combed yarns were traded at ₹250–260 (approximately $2.91–3.03) per kg and ₹255–265 (approximately $2.97–3.09) per kg, respectively; while 30-count carded yarn was noted at ₹240–245 (approximately $2.80–2.86) per kg, according to trade sources.

The Delhi market also reported stability in cotton yarn prices, though demand was weaker. Slow buying from the consumer industry has persisted for several weeks. However, sources expect improvement in April, as the industry has been operating ‘hand to mouth’ for an extended period.

In Delhi, 30-count combed knitting yarn was traded at ₹259–260 (approximately $3.02–3.03) per kg (excluding GST), 40-count combed at ₹284–285 (approximately $3.31–3.32) per kg, 30-count carded at ₹233–235 (approximately $2.72–2.74) per kg, and 40-count carded at ₹258–260 (approximately $3.01–3.03) per kg.

In Panipat, India’s home textile hub, recycled yarn and raw material prices remained stable. Market sources noted that demand for selected home furnishing items may improve in the coming weeks. Rising temperatures are expected to drive demand for products such as bed sheets, particularly from the north Indian states of Uttar Pradesh and Bihar.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75–78 (approximately $0.87–0.91) per kg (GST paid). Other varieties were quoted as follows: 10s recycled PC yarn (Black) at ₹52–55 (approximately $0.61–0.65) per kg, 20s recycled PC yarn (Grey) at ₹95–99 (approximately $1.11–1.16) per kg, and 30s recycled PC yarn (Grey) at ₹128–134 (approximately $1.49–1.56) per kg. Cotton comber prices were noted at ₹103–106 (approximately $1.20–1.24) per kg, while recycled polyester fibre (PET bottle fibre) was quoted at ₹80–82 (approximately $0.93–0.96) per kg.

In North India, cotton prices recovered after falling in the previous two trading sessions. Prices rose by ₹10–15 per maund of 37.2 kg, following a rise in ICE cotton futures on Wednesday. Traders said the domestic market is mirroring the global trend. Additionally, a slow arrival of cotton at the end of the current season is supporting prices. However, mills are not showing much interest in buying cotton in the final week of FY 2024–25. Buying activity is expected to pick up in April, with the start of the new fiscal year 2025–26.

North India’s cotton arrival was estimated at 6,500 bales of 170 kg, comprising 200 bales in Punjab, 3,000 in Haryana, 2,500 in upper Rajasthan, and 800 in lower Rajasthan. In Punjab, cotton prices ranged from ₹5,530 to ₹5,540 (approximately $64.45–64.56) per maund of 37.2 kg. In Haryana, prices ranged from ₹5,450 to ₹5,475 (approximately $63.51–63.81), and in upper Rajasthan, from ₹5,550 to ₹5,570 (approximately $64.68–64.91). In lower Rajasthan, cotton was priced between ₹52,900 and ₹53,900 (approximately $616.50–628.15) per candy of 356 kg. Seed cotton was priced between ₹7,100 and ₹7,250 (approximately $82.74–84.49) per quintal of 100 kg.

ALCHEMPro News Desk (KUL)