North Indian cotton yarn demand sluggish; mills unable to raise prices

In Ludhiana, cotton yarn prices remained steady. Mills are attempting to raise their selling prices, but the lack of demand is preventing any increase. A trader from Ludhiana told Fibre2Fashion, “Buyers are waiting for a breakthrough in trade deal negotiations between India and the US. Once there is clarity on US tariffs, foreign brands and retailers may become more willing to place orders. The current uncertainty is affecting the entire textile value chain.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹255-265 (~$2.97-3.09) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹245-255 (~$2.86-2.97) per kg and ₹250-260 (~$2.92-3.03) per kg, respectively; and carded yarn of 30 count was noted at ₹235-240 (~$2.74-2.80) per kg today, according to trade sources.

A similar tone was observed in Delhi’s cotton yarn market. Payment constraints continue to affect buyers’ purchasing power. Although the recent rise in cotton prices should ideally stimulate yarn buying, demand has not picked up, possibly because buyers are waiting for prices to bottom out. The prolonged trade deal talks are also contributing to sluggish demand.

In Delhi, 30 count combed knitting yarn was traded at ₹257-258 (~$3.00-3.01) per kg (GST extra), 40 count combed at ₹282-283 (~$3.29-3.30) per kg, 30 count carded at ₹231-233 (~$2.69-2.72) per kg, and 40 count carded at ₹256-258 (~$2.99-3.01) per kg today.

Cotton comber prices in the Panipat market increased by ₹2–3 per kg, while recycled polyester fibre prices declined. Traders attributed the rise in comber prices to increasing cotton prices and concerns over a potential decline in production. However, recycled polyester fibre prices eased as domestic virgin polyester fibre manufacturers announced price cuts for the second fortnight of this month. According to traders, demand for recycled yarn also dropped as several roads to western Uttar Pradesh and other regions remain blocked due to the Kanwar Yatra. Restrictions are expected to ease next week, potentially restoring demand to normal levels. Recycled yarn prices have not seen significant changes in the past few days.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (~$0.87-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹60-65 (~$0.70-0.76) per kg, 20s recycled PC yarn (Grey) at ₹101-103 (~$1.18-1.20) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (~$1.52-1.57) per kg. Cotton comber prices were noted at ₹105-107 (~$1.22-1.25) per kg and recycled polyester fibre (PET bottle fibre) at ₹73-77 (~$0.85-0.90) per kg today.

Cotton prices in north India stabilised today following a steep rise in recent weeks. Prices had increased by ₹50–70 per maund (37.2 kg) over the past two weeks. Traders noted that cotton prices have risen despite sluggish yarn demand. Buyers are quoting above the base price in Cotton Corporation of India (CCI) auctions, reflecting strong demand from the consumer industry and traders. CCI stocks in north India, Gujarat, and Maharashtra are reportedly depleting rapidly. To avoid expensive freight costs from Telangana and other southern states, buyers are bidding more aggressively.

Cotton arrivals in north India have dwindled to negligible levels, with only stocked cotton being traded. Cotton prices were quoted in Punjab at ₹5,960–5,970 (~$69.50–69.62) per maund (37.2 kg); in Haryana at ₹5,690–5,770 (~$66.35–67.29); and in upper Rajasthan at ₹5,980–6,000 (~$69.73–69.97). In lower Rajasthan, prices ranged from ₹55,000–57,000 (~$641.47–664.69) per candy of 356 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)