North India's cotton yarn stable, but costlier cotton may cut margins

In Ludhiana, the demand was average and the prices steady. Mills aimed to raise yarn prices to pass on the heightened cost of cotton but the demand did not facilitate any price hike. A trader from the Ludhiana market told Fibre2Fashion, “The demand from the downstream industry was lukewarm, which could sustain prices at the current level. If mills increase yarn prices, buyers will lose interest because they are facing low demand for fabric from the garment industry.” 

In the Ludhiana market, 30 count cotton combed yarn was sold at ₹264-274 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹254-264 per kg and ₹260-270 per kg, respectively; and carded yarn of 30 count was noted at 244-250 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

In the Delhi market too, cotton yarn prices stayed stable amidst regular but limited demand from the downstream industry. Traders and spinners could not afford to reduce prices to lure buyers. A trader from the Delhi market told F2F, "Spinning mills are facing dual pressures. On one hand, there is poor demand from the weaving industry, preventing them from raising prices. On the other, increased cotton prices are squeezing their margins. The current unusual market conditions are expected to persist at least for the remainder of the year." 

In Delhi, 30 count combed yarn was traded at ₹267-272 per kg (GST extra), 40 count combed at ₹297-302 per kg, 30 count carded at ₹237-242 per kg and 40 count carded at ₹267-272 per kg, as per TexPro. 

Recycled yarn prices remained steady amidst poor demand in Panipat, with limited purchases from the home furnishing downstream industry. Insiders revealed a substantial stockpile of yarn and other finished products ready to meet the current festival demand, hence they harbour no significant expectations from this festival season. 

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹77-82 per kg (GST Paid). Other varieties and counts were noted as 10s recycled PC yarn (Black) at ₹50-54 per kg, 20s recycled PC yarn (Grey) at ₹92-97 per kg and 30s recycled PC yarn (Grey) at ₹135-145 per kg. Comber prices were hovering at ₹133-136 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹73-75 per kg. 

North India’s cotton prices are on the rise, driven by a stronger ICE cotton market and improved domestic buying. Trade sources mentioned that limited supply in the country and strong domestic demand, spurred by short selling by ginners and traders, are supporting the cotton prices. A trader from Bathinda said that ginners and traders had sold cotton in advance as they anticipated lower prices, but ICE cotton drove up local prices in recent weeks. 

North India’s cotton arrival also reduced to 8,000 bales of 170 kg due to cloudy and rainy weather. State-wise arrival was noted as Haryana 4,000 bales, Punjab 1,000 bales, upper Rajasthan 1,000 and lower Rajasthan 2,000 bales. New cotton increased by ₹75-100 to ₹6,425-6,435 per maund of 37.2 kg in all the states of north India. 

ALCHEMPro News Desk (KUL)