North India's cotton yarn market steadies amidst slow demand

In the Ludhiana market, sentiments were weak in the cotton yarn trade as demand was very slow. Cotton yarn exports were also limited due to the poor demand for garments in the global market. Domestic garment manufacturing units were cautious in buying fabric, leading to decreased demand in the weaving and spinning industries. A trader from the Ludhiana market told Fibre2Fashion, "The export demand for cotton yarn was also slow. The huge supply of cotton fabric and garments from Bangladesh was also affecting domestic demand." 

In Ludhiana, 30 count cotton combed yarn was sold at ₹250-260 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹240-250 per kg and ₹245-255 per kg respectively; and carded yarn of 30 count was noted at 230-235 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Delhi market also noted limited demand from the weaving industry. A trader from the Delhi market told F2F, "There was no improvement in market sentiments in the new year. Cotton yarn prices remained steady. The new year may see some demand from retail brands as they did not buy in the recently concluded year 2023 due to huge stocks. Now they are at ease in terms of stocking. Retail demand may also improve in the US and Europe." In this market, 30 count combed yarn was traded at ₹250-255 per kg (GST extra), 40 count combed at ₹275-280 per kg, 30 count carded at ₹227-231 per kg, and 40 count carded at ₹252-255 per kg, as per TexPro. 

In Panipat, the home textile segment faced a slowdown in 2023. Traders hope for better buying from foreign brands this year. However, it's unclear when export demand will pick up. Therefore, exporters and the market will have to wait. In this market, 10s recycled PC yarn (Grey) was traded at ₹74-78 per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹49-52 per kg, 20s recycled PC yarn (Grey) at ₹85-90 per kg, and 30s recycled PC yarn (Grey) at ₹133-142 per kg. Cotton comber prices were noted at ₹112-114 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹72-74 per kg. 

North Indian cotton prices were hovering slightly higher due to stronger ICE cotton. Local cotton prices improved by ₹25-30 per maund of 37.2 kg in north Indian markets. Cotton arrival was limited to 21,000 bales amid more availability of poor-quality goods. According to traders, spinning mills were buying cotton, but they were not able to get a good quality supply. Lower quality cotton was not suitable for yarn production. It's estimated that around 50 per cent of the cotton arriving in the market was of lower and average quality. Cotton arrival was around 21,000 bales of 170 kg in the region. State-wise arrivals were noted as Punjab 3,000 bales, Haryana 6,000 bales, upper Rajasthan 6,000, and lower Rajasthan 6,000 bales. Cotton was priced in Punjab at ₹5,450-5,550 and in Haryana at ₹5,425-5,525, upper Rajasthan at ₹5,300-5,500 per maund of 37.2 kg. Bikaner line cotton was sold at ₹5,525-5,600 per maund. In lower Rajasthan, cotton was priced at ₹52,000-54,000 per candy of 356 kg. 

ALCHEMPro News Desk (KUL)