North India cotton yarn market awaits fiscal turnaround; prices steady

Cotton yarn prices were steady in the Ludhiana market. Demand was weak as buyers were not interested in taking on any liability in the current fiscal due to the implications of the new payment rule. Gulshan Jain, a trader from the Ludhiana market, told Fibre2Fashion, "Buyers are expected to remain inactive until March 31. The market will take some time to react to the minimum import price imposed on imported synthetic knitted fabric. There were apprehensions about the diversion of synthetic knitted fabric into the HS codes, on which no MIP is imposed."

In Ludhiana, 30 count cotton combed yarn was sold at ₹275-285 (approximately $3.32-3.44) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹264-275 (approximately $3.20-3.32) per kg and ₹271-281 (approximately $3.27-3.39) per kg, respectively; and carded yarn of 30 count was noted at ₹255-262 (approximately $3.08-3.16) per kg today, according to Fibre2Fashion's market insight tool TexPro.

The Delhi market also witnessed stability in cotton yarn prices due to weak demand in the last fortnight of the current fiscal. A Delhi-based trader told F2F, "As the government did not provide any relief in the payment rule, buyers were reluctant to finalise any deal. A general sense of worry and confusion regarding the tax implications of the payment rule discouraged buyers from placing new orders. Summer demand will only pick up in the next month."

In this market, 30 count combed yarn was traded at ₹275-280 (approximately $3.32-3.38) per kg (GST extra), 40 count combed at ₹300-305 (approximately $3.62-3.68) per kg, 30 count carded at ₹250-255 (approximately $3.02-3.08) per kg, and 40 count carded at ₹277-280 (approximately $3.25-3.38) per kg today, as per TexPro.

Panipat's recycled yarn market is facing a seasonal bearish trend in retail demand. Manufacturers of recycled yarn are struggling to maintain prices amid slow demand. Traders mentioned that manufacturers were not keen on selling recycled yarn at lower prices.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹76-80 (approximately $0.92-0.97) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹51-54 (approximately $0.62-0.66) per kg, 20s recycled PC yarn (Grey) at ₹88-93 (approximately $1.06-1.12) per kg and 30s recycled PC yarn (Grey) at ₹133-142 (approximately $1.61-1.72) per kg. Cotton comber prices were noted at ₹120-122 (approximately $1.45-1.47) per kg and recycled polyester fibre (PET bottle fibre) was noted at ₹71-73 (approximately $0.86-0.88).

North India cotton prices increased in Punjab and Haryana by ₹50-60 per maund of 37.2 kg due to an increase in ICE cotton. However, the natural fibre was sold at steady prices in the Rajasthan market. Last week, north Indian cotton prices closed lower. Traders said that demand from spinning mills remained normal. Buyers were cautious about quality, as 50 per cent of the arrivals were still sub-standard. Cotton arrivals decreased to below 10,000 bales of 170 kg.

Today's arrivals were noted at 9,300 bales of 170 kg. State-wise arrivals were recorded as Punjab 800 bales, Haryana 3,500 bales, upper Rajasthan 3,000 bales, and lower Rajasthan 2,000 bales. Cotton prices in Punjab ranged from ₹6,125 to ₹6,175 (approximately $73.87-74.47) per maund of 37.2 kg, while in Haryana, prices ranged from ₹6,075 to ₹6,175 (approximately $73.26-74.47) per maund. In upper Rajasthan, cotton was priced between ₹5,975 and ₹6,175 (approximately $72.06-74.47) per maund. Bikaner line cotton sold for ₹6,175 to ₹6,300 (approximately $74.47-75.98) per maund. In lower Rajasthan, cotton was priced at ₹58,500 to ₹60,500 (approximately $705.50-729.62) per candy of 356 kg.

ALCHEMPro News Desk (KUL)