North India sees decline in cotton yarn prices amid reduced demand

The Ludhiana market experienced a decline in cotton yarn prices, primarily due to a lack of demand from the weaving industry. The dumping of fabric from China continues to be a significant issue for the sector. A local trader told Fibre2Fashion, "Both mills and traders are under pressure to sell at reduced prices. Consequently, market rates for cotton yarn decreased by ₹2 per kg. There was no improvement in the demand." 

Prices for 30-count cotton combed yarn ranged from ₹262-272 per kg (GST inclusive); 20 and 25-count combed yarn traded between ₹252-262 per kg and ₹257-267 per kg, respectively; and 30-count carded yarn was priced ₹242-247 per kg in Ludhiana, as per Fibre2Fashion's market insight tool TexPro. 

In Delhi, the cotton yarn market also saw a decrease in prices, attributed to a sluggish demand from downstream industries. Despite the festival season, domestic demand remained bearish. A trader from the Delhi market told F2F, "We observed no uptick in demand from the weaving industry. Both domestic and global demands for retail products have been uninspiring." 

According to TexPro, 30-count combed yarn traded between ₹265-270 per kg (GST extra), 40-count combed yarn at ₹295-300 per kg, 30-count carded yarn at ₹235-240 per kg, and 40-count carded yarn at ₹265-270 per kg. 

In Panipat, the recycled yarn market observed a downward trend, driven by weak demand in the retail sector. Several counts and varieties of recycled yarn eased by ₹5-7 per kg. A local trader cited the lower festival demand as a primary concern for the industry. 

In Panipat, 10s recycled PC yarn (Grey) traded at ₹75-80 per kg (GST Paid). Other varieties included 10s recycled PC yarn (Black) at ₹50-54 per kg, 20s recycled PC yarn (Grey) at ₹90-95 per kg, and 30s recycled PC yarn (Grey) at ₹135-145 per kg. Meanwhile, cotton comber prices were recorded at ₹123-125 per kg, and recycled polyester fibre (PET bottle fibre) was noted at ₹74-76 per kg. 

In north India, cotton prices have further declined by ₹25-50 per maund of 37.2 kg due to an increase in arrivals and limited purchases by spinning mills. Trade sources have reported that the rate of cotton arrival continues to rise, reaching 23,000 bales in the region. However, the peak season for cotton arrivals has yet to arrive. 

Prices for seed cotton (Kapas) have also eased to ₹6,500-7,000 per quintal, offering what is considered a comfortable rate for the downstream industry. Poor-quality seed cotton with lower RD values fetched even lower prices in Rajasthan. In terms of state-wise distribution, Punjab reported an arrival of 2,000 bales, Haryana 9,000 bales, upper Rajasthan 6,000 bales, and lower Rajasthan 6,000 bales. Cotton was priced between ₹6,000-6,050 per maund in Punjab, ₹5,950-6,000 in Haryana, and ₹5,850-5,950 in upper Rajasthan, and at ₹57,200-58,200 per candy of 356 kg in lower Rajasthan. 

ALCHEMPro News Desk (KUL)