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North India sees slow demand in cotton yarn, prices ease in Delhi

17 Oct '24
4 min read
North India sees slow demand in cotton yarn, prices ease in Delhi
Pic: Adobe Stock

Insights

  • Cotton yarn markets in north India face weak demand and payment constraints, with prices easing in Delhi but remaining stable in Ludhiana.
  • Traders attribute the slowdown to liquidity diversion to stock markets.
  • Panipat's recycled yarn market sees average demand, but payment issues persist.
  • Cotton prices rose due to stronger ICE cotton and increased arrivals.
The cotton yarn markets in north India continued to experience sluggish demand due to payment constraints. Prices in the Delhi market dropped by ₹2 per kg, while they remained stable in Ludhiana. Traders reported that payment conditions had not improved, even during the festival season. It was suggested that liquidity may have been diverted towards the booming stock market, contributing to the payment issues. The market is not expected to improve before Diwali. Panipat's recycled yarn market saw average demand, with prices remaining stable. However, the market is also grappling with tight payment conditions, which are reducing buyers’ purchasing power. Cotton comber prices eased by ₹2-3 per kg due to rising cotton arrivals, while recycled polyester fibre traded at stable levels.

In Delhi, cotton yarn prices dropped by ₹2 per kg, and stockists, traders, and mills are under pressure to attract potential buyers. A Delhi-based trader told Fibre2Fashion, “There was very slow demand of cotton yarn as the festival of Diwali is approaching. Most thrust area is retail sale in these days of festival season. Cotton yarn demand may see improvement after Diwali.”

In Delhi, 30 count combed knitting yarn was priced at ₹265-268 (approximately $3.15-3.19) per kg (excluding GST), 40 count combed yarn at ₹287-295 (approximately $3.41-3.51) per kg, 30 count carded yarn at ₹242-244 (approximately $2.88-2.90) per kg, and 40 count carded yarn at ₹267-270 (approximately $3.18-3.21) per kg.

Meanwhile, Ludhiana witnessed stability in cotton yarn prices, although demand remained weak. Trade sources noted that payment conditions typically improve after Dussehra, but the market is still experiencing slow payment flows. Short-term gains from stock market investments may have led to payment constraints, as funds were diverted away from cotton yarn trading. Only increased demand will encourage traders to reinvest in the cotton yarn market.

In Ludhiana, 30 count cotton combed yarn was sold at ₹262-272 (approximately $3.12-3.24) per kg (inclusive of GST), with 20 and 25 count combed yarns trading at ₹252-262 (approximately $3.00-3.12) per kg and ₹257-267 (approximately $3.07-3.19) per kg, respectively. Carded yarn of 30 count was noted at ₹242-247 (approximately $2.89-2.95) per kg, according to trade sources.

India’s home textile hub Panipat market is getting average demand of recycled yarn. Therefore, recycled yarn was also traded at the previous levels in the market. The market is also facing payment issue which his hampering buying. Traders said that slow demand from home textile segment was compensated by rising consumption of recycled yarn by apparel industry. Cotton comber prices eased after increase in cotton arrival. Comber supply also improved as mills have increased cotton yarn production. Recycled polyester fibre was stable despite rise in virgin polyester fibre in the last week.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.93-0.98) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.63-0.67) per kg, 20s recycled PC yarn (Grey) at ₹96-102 (approximately 1.14-1.21) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.55-1.61) per kg. Cotton comber prices were noted at ₹100-102 (approximately $1.19-1.21) per kg and recycled polyester fibre (PET bottle fibre) at ₹77-81 (approximately $0.92-0.96) per kg today.

In north India, cotton prices increased again after a brief dip on Wednesday, rising by ₹20 per maund of 37.2 kg. Stronger ICE cotton supported domestic prices, with improved quality and lower moisture content raising valuations. Cotton arrivals are steadily increasing in the region.

The arrival of cotton in north India rose to 11,200 bales of 170 kg each, including 700 bales in Punjab, 5,000 in Haryana, 2,000 in upper Rajasthan, and 3,500 in lower Rajasthan. In Punjab, cotton prices ranged from ₹5,760 to ₹5,770 (approximately $68.52-68.64) per maund of 37.2 kg, while in Haryana, they ranged from ₹5,740 to ₹5,750 (approximately $68.29-68.41). Upper Rajasthan saw prices between ₹5,760-₹5,770 (approximately $68.52-68.64) per maund, and in lower Rajasthan, prices ranged from ₹55,000 to ₹55,500 (approximately $654.31-660.26) per candy of 356 kg. Seed cotton was priced at ₹7,300-7,800 (approximately $86.85-92.79) 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)

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