North India's yarn markets struggle with weakened demand

In the Ludhiana market, market sentiments further weakened in the cotton yarn trade due to the potential disruption in cotton garment exports, which may lead to lower buying of the raw material. However, cotton yarn prices remained stable. A trader from the Ludhiana market told Fibre2Fashion, “The market is worried about slower demand from downstream industries. Logistic disruptions in export trade may lead to further weakness in demand. The market was already facing poor uptake of the raw material.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹252-262 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹242-252 per kg and ₹247-257 per kg respectively; and carded yarn of 30 count was noted at 232-237 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In the Delhi market, a stable trend was observed amid average demand for cotton yarn, although there was lower demand from the weaving industry. A trader from the Delhi market told F2F, “There was no immediate visible impact of export disruptions on the cotton yarn trade. However, market sentiments were not positive. Buyers were cautious about new purchases.” 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.

There was no improvement in demand in India's home textile hub, Panipat. Recycled yarn continued to be traded at previous levels. Similarly, weak sentiments were also observed in the home textile value chain. Trade sources indicated that when the market was facing weak demand and mills were under pressure to sell their stock, global trade challenges were also affecting sentiments. The demand for recycled yarn was very weak, as the downstream industry faced slow buying of finished products. The prices of recycled yarn and raw materials remained at their previous levels.

In Panipat, 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 and recycled polyester fibre (PET bottle fibre) at ₹70-73 per kg.

Cotton prices in north India have improved as spinners were actively engaged in fresh buying. Cotton arrival was steady in the cotton-growing states of north India. Traders reported better demand from spinning mills, as they were seeking better deals for stocking raw material. Regular but limited buying by the Cotton Corporation of India (CCI) was also a supportive factor for the market. Cotton yarn prices were quoted higher, at ₹25-50 per maund of 37.2 kg.

Cotton arrival in the region was around 30,000 bales of 170 kg. State-wise arrivals were as follows: Punjab with 4,500 bales, Haryana with 7,500 bales, upper Rajasthan with 10,000 bales, and lower Rajasthan with 8,000 bales. Cotton was priced in Punjab at ₹5,325-5,450, in Haryana at ₹5,325-5,450, and in upper Rajasthan at ₹5,200-5,500 per maund of 37.2 kg. Cotton in the Shri Ganganagar region was traded ₹100-125 per maund lower due to poor quality. In lower Rajasthan, cotton was priced at ₹51,600-53,600 per candy of 356 kg.

ALCHEMPro News Desk (KUL)