North India cotton yarn prices steady amid slow demand

The Ludhiana market saw weak demand for cotton yarn from the weaving industry. Its prices did not see significant movement in the last couple of days. However, spinning mills are receiving more orders from overseas buyers. A trader from the Ludhiana market told Fibre2Fashion, “The continued fall in the Indian rupee against the US dollar has increased the competitiveness of Indian spinners. They are getting more orders from the global market, but domestic demand is not supportive of the cotton yarn trade.”

In Ludhiana, 30-count cotton combed yarn was sold at ₹260-270 (approximately $3.00-3.12) per kg (inclusive of GST); 20 and 25-count combed yarn were traded at ₹250-260 (approximately $2.89-3.00) per kg and ₹255-265 (approximately $2.94-3.06) per kg, respectively; and carded yarn of 30-count was noted at ₹240-245 (approximately $2.77-2.83) per kg today, according to trade sources.

The Delhi market also witnessed a steady trend in cotton yarn prices. The market is also facing tight payment conditions as February is approaching fast. As per the payment rule, buyers must clear payment dues to SME suppliers within 45 days and within the same fiscal year of purchase. This means buyers are not keen on purchasing from SME suppliers due to the payment mandate. According to market sources, slow demand will worsen the payment problem as everyone will try to hold cash in the last months of the current fiscal year, which will end on 31 March.

In this market, 30-count combed knitting yarn was traded at ₹260-262 (approximately $3.00-3.03) per kg (GST extra), 40-count combed at ₹282-290 (approximately $3.26-3.35) per kg, 30-count carded at ₹237-239 (approximately $2.74-2.76) per kg, and 40-count carded at ₹262-265 (approximately $3.03-3.06) per kg today.

India’s home textile hub Panipat noticed weaker demand of recycled yarn. Retail demand as well as manufacturing activities in the entire value chain were weak. But, mills and stockists are able to sell their stocks to garment industry. Recycled yarn consumption is increasing in garment industry due to focus on sustainability. Recycled yarn prices did not see significant movement in the market. Cotton comber eased after decrease in cotton prices. But recycled polyester fibre was traded steady. Indian producers had raised prices of virgin polyester. But it could not drive prices of recycled polyester fibre.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.90-0.95) per kg (GST paid). Other varieties and counts were noted as follows: 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.61-0.65) per kg, 20s recycled PC yarn (Grey) at ₹96-102 (approximately $1.11-1.18) per kg, and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.50-1.56) per kg. Cotton comber prices were noted at ₹101-106 (approximately $1.17-1.22) per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹81-84 (approximately $0.94-0.97) per kg today.

In North India, cotton prices continued to show a bearish tone amid falling ICE cotton. Domestic cotton prices further eased down by ₹10 per maund of 37.2 kg. Prices have declined by ₹50-60 per maund over the week.  Traders said that spinning mills are buying cotton only for immediate needs. They are not in a hurry to stock the natural fibre despite large procurement by the Cotton Corporation of India, which will reduce cotton supply in the open market in the coming months.

North India’s cotton arrival was 11,700 bales of 170 kg, comprising 700 bales in Punjab, 2,500 bales in Haryana, 5,500 bales in upper Rajasthan, and 3,000 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,500 to ₹5,510 (approximately $63.50-63.62) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,490 to ₹5,500 (approximately $63.39-63.50). In upper Rajasthan, cotton was priced between ₹5,510 and ₹5,530 (approximately $63.62-63.85) per maund. In lower Rajasthan, it was priced at ₹52,500 to ₹53,700 (approximately $606.16-620.02) per candy of 356 kg, while seed cotton was priced at ₹7,150-7,550 (approximately $82.85-87.17) 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)