North India sees slow yarn demand despite costlier cotton

Buyers remain in a wait-and-watch mode in Panipat’s recycled yarn and raw material trade. Traders observed continued stability in prices for recycled yarn and raw materials. The summer season typically remains dull for the domestic home textile market. The export outlook also remains unclear, as a stable US policy on duties is yet to materialise. The market is likely to take more time to find a clear direction.

The Ludhiana market showed no signs of improvement in cotton yarn demand. Prices remained stable. Optimism for strong demand was absent, and actual buying from the consumer industry and stockists remained slow. A trader from the Ludhiana market told Fibre2Fashion, “The market has witnessed average to slow demand for cotton yarn. We will have to wait longer for any uptick in demand driven by the current tariff issue. Imports of Chinese fabric have further dampened sentiment in the local cotton yarn market. The intermediary product is caught between weak demand and rising prices.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 (approximately $3.00-3.11) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 (approximately $2.88-3.00) per kg and ₹253-263 (approximately $2.94-3.06) per kg, respectively; and carded yarn of 30 count was noted at ₹238-243 (approximately $2.77-2.82) per kg today, according to trade sources.

The Delhi market also saw weak demand for cotton yarn. However, different varieties and counts of cotton yarn were traded at stable prices. According to market sources, garment and fabric export activities remain limited. As of now, traders and consumer industries are waiting for a clearer outlook. If export orders diverted from China shift to India, cotton yarn may experience stronger demand.

In Delhi, 30 count combed knitting yarn was traded at ₹259-260 (approximately $3.01-3.02) per kg (GST extra), 40 count combed at ₹284-285 (approximately $3.30-3.31) per kg, 30 count carded at ₹233-235 (approximately $2.71-2.73) per kg, and 40 count carded at ₹258-260 (approximately $3.00-3.02) per kg today.

India’s home textile hub, Panipat, also reported stability in recycled yarn and its raw materials. Trade sources stated that recycled yarn was sold at previous levels, with buying from the consumer industry still very slow. Supply of recycled yarn currently exceeds demand, indicating no improvement in recent weeks. Surplus supplies have weighed on market sentiment, yet manufacturers have not lowered prices. Producers are also facing a shortage of PET bottles, used as raw material for recycled polyester fibre.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (approximately $0.87-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹52-55 (approximately $0.60-0.64) per kg, 20s recycled PC yarn (Grey) at ₹95-99 (approximately 1.10-1.15) per kg and 30s recycled PC yarn (Grey) at ₹128-134 (approximately $1.49-1.56) per kg. Cotton comber prices were noted at ₹103-106 (approximately $1.20-1.23) per kg and recycled polyester fibre (PET bottle fibre) at ₹80-82 (approximately $0.93-0.95) per kg today.

In north India, cotton prices rose by ₹20–50 per maund of 37.2 kg as arrivals declined further. The market saw limited availability of cotton fibre in the hands of private traders. Traders attributed this to lower production and large-scale purchases by the Cotton Corporation of India (CCI), which has procured and stocked 100 lakh bales of cotton this season. The strength of spinners’ demand is evident from CCI having already sold around 30 lakh bales since the start of the current season, reflecting the consumer industry’s appetite even at prices higher than market rates.

Cotton arrivals in north India were reported at 2,800 bales of 170 kg: 100 bales in Punjab, 1,300 in Haryana, 1,000 in upper Rajasthan, and 400 in lower Rajasthan. In Punjab, prices ranged from ₹5,610 to ₹5,620 (approximately $65.16–65.28) per maund of 37.2 kg. In Haryana, they ranged from ₹5,500 to ₹5,540 (approximately $63.88–64.35). In upper Rajasthan, cotton was priced between ₹5,620–5,640 (approximately $65.28–65.51) per maund, while in lower Rajasthan it was quoted at ₹53,500–54,800 (approximately $621.24–636.49) per candy of 356 kg. Seed cotton was priced at ₹7,300–7,500 (approximately $84.79–87.11) 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)