North India cotton yarn prices rise; optimism grows from US rate cut

In Ludhiana, various counts and varieties of cotton yarn saw a price increase of ₹2 per kg as mills adjusted their rates. A trader from Ludhiana told Fibre2Fashion, "Mills have raised their selling rates following the increase in cotton prices, but there hasn't been any noticeable improvement in demand from the downstream industry. The garment industry, in particular, has not shown significant buying support."

In Ludhiana, 30 count cotton combed yarn was sold at ₹262-272 (approximately $3.13-3.25) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹252-262 (approximately $3.01-3.13) per kg and ₹257-267 (approximately $3.07-3.19) per kg, respectively; and carded yarn of 30 count was noted at ₹242-247 (approximately $2.89-2.95) per kg today, according to trade sources.

Meanwhile, the Delhi market has remained stable in terms of cotton yarn prices, despite slow demand. Sources indicate that cotton yarn is priced around ₹7-8 per kg lower than the mills’ selling rates, reflecting the ongoing pressure on market prices due to weak buying. However, traders anticipate some support from the export market in the coming months, as the anticipated rate cut in the US is expected to boost market confidence.

In this market, 30 count combed knitting yarn was traded at ₹267-270 (approximately $3.18-3.22) per kg (GST extra), 40 count combed at ₹289-297 (approximately $3.44-3.54) per kg, 30 count carded at ₹244-246 (approximately $2.91-2.93) per kg, and 40 count carded at ₹269-272 (approximately $3.20-3.24) per kg today.

In Panipat, India’s home textile hub, the market is facing sluggish demand and payment issues. Prices of recycled yarn and raw materials remain stable. A trader in Panipat mentioned that payment problems are a significant concern due to the slow demand. Mills and stockists are grappling with inventory and cash flow management, as stocks are piling up and liquidity is tied up in unsold goods. The payment crisis is further restricting consumer industry purchases.

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 ₹100-110 (approximately $1.19-1.31) per kg and recycled polyester fibre (PET bottle fibre) at ₹73-77 (approximately $0.87-0.92) per kg today.

In north India, old cotton prices decreased slightly by ₹20-25 per maund of 37.2 kg. However, prices for new cotton expected for delivery in September and October remained stable. Cotton arrivals have begun in limited quantities in Haryana and are expected to increase by early October. Traders noted that last season’s cotton prices have eased due to the bearish tone on the ICE cotton market and the reduced demand from spinning mills.

Haryana’s markets reported cotton arrivals of 125-150 bales (170 kg each). No cotton from the previous season was reported in Haryana, Punjab, or Rajasthan. Ginners and stockists are selling cotton from their existing stocks. In Punjab, old cotton prices ranged from ₹5,890 to ₹5,900 (approximately $70.41-70.52) per maund of 37.2 kg, while in Haryana, they ranged from ₹5,790 to ₹5,800 (approximately $69.21-69.63). In upper Rajasthan, cotton was priced between ₹5,550 and ₹5,900 (approximately $66.34-70.52) per maund, and in the Bikaner line, it sold for ₹5,880 to ₹5,980 (approximately $70.29-71.48) per maund. In lower Rajasthan, cotton prices ranged from ₹56,000 to ₹59,000 (approximately $669.39-705.25) per candy of 356 kg. New cotton was sold at ₹5,875 (approximately $70.23) per maund for September delivery and ₹5,850 (approximately $69.93) per maund for October delivery. Seed cotton (Narma) prices varied widely, ranging from ₹6,800 to ₹7,300 (approximately $81.28-87.26) per quintal, reflecting significant quality and moisture differences.

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)