North India cotton yarn prices drop amid export setbacks to Bangladesh

Furthermore, demand in the north Indian cotton yarn market has been slow due to a delayed summer demand. In Panipat, recycled polyester fibre prices have eased following a recent steep rise by producers, which discouraged purchases amidst slow demand for home textiles. Traders noted that while recycled yarn prices remained relatively stable, demand has further weakened as raw material trade has slowed down in the Diwali period.

Cotton yarn prices declined by ₹2 per kg in Delhi. Demand for cotton yarn has been waning in the lead-up to the festival period, with mills and stockists looking to liquidate their stocks. A trader from Delhi told Fibre2Fashion, “The next fortnight will not see noticeable trade of cotton yarn as downstream industry gets busy in dispatches of their products and payment collection during the festival week. We have to wait for buying to improve by the end of the first week of the next month. Bangladesh issue is another dampening factor for cotton yarn trade.”

In Delhi, 30 count combed knitting yarn was traded at ₹263-266 (approximately $3.13-3.16) per kg (GST extra), 40 count combed at ₹285-293 (approximately $3.39-3.49) per kg, 30 count carded at ₹240-242 (approximately $2.85-2.88) per kg, and 40 count carded at ₹265-267 (approximately $3.15-3.18) per kg today.

Similarly, Ludhiana witnessed a decrease in cotton yarn prices, which fell by ₹2 per kg across several counts and varieties. Trade sources attribute this to reluctance among Indian exporters to export to Bangladesh due to the issues with LCs issued by Bangladeshi banks. This, combined with the weak summer demand, has led to a dampening of sentiments in the cotton yarn market.

In Ludhiana, 30 count cotton combed yarn was sold at ₹265-270 (approximately $3.15-3.21) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹250-260 (approximately $2.97-3.09) per kg and ₹255-265 (approximately $3.03-3.15) per kg, respectively; and carded yarn of 30 count was noted at ₹240-245 (approximately $2.85-2.91) per kg today, according to trade sources.

In Panipat, the recycled polyester fibre market showed a downward trend, with prices easing by ₹1-2 per kg in the local market. However, recycled yarn remained steady amidst slow demand. Cotton comber prices were stable as supply improved with increased yarn production. Traders noted that downstream buyers have reduced their purchases as Diwali approaches, and the trade of raw materials typically slows down during the festival season as the focus shifts to finished products.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.93-0.98) 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 ₹96-102 (approximately 1.14-1.21) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.55-1.61) per kg. Cotton comber prices were noted at ₹100-102 (approximately $1.19-1.21) per kg and recycled polyester fibre (PET bottle fibre) at ₹75-80 (approximately $0.89-0.95) per kg today.

In north India, cotton prices remained stable despite rising arrivals. Trade sources reported that cotton arrivals are increasing, and they are expected to peak after Diwali. The combination of higher arrivals and slow demand has dampened market sentiment, although better quality and lower moisture content in the cotton are positive factors.

Cotton arrivals in north India increased to 12,300 bales of 170 kg each, with 800 bales in Punjab, 5,500 in Haryana, 2,000 in upper Rajasthan, and 4,000 in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,760 to ₹5,770 (around $68.52-68.64) per maund of 37.2 kg, while in Haryana, prices were between ₹5,740 and ₹5,750 (around $68.29-68.41). In upper Rajasthan, prices were ₹5,760-5,770 (around $68.52-68.64) per maund, and in lower Rajasthan, they were ₹55,000 to ₹55,500 (around $654.31-660.26) per candy of 356 kg. Seed cotton prices ranged from ₹7,300 to ₹7,800 (around $86.85-92.79) per quintal of 100 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)