North Indian cotton yarn faces weaker demand, prices ease in Ludhiana

In Panipat, recycled yarn, cotton comber, and recycled polyester fibre prices remained stable. However, the demand for home furnishing products has weakened post-Diwali, while blankets and winter clothing were in high demand.

Cotton yarn prices in Ludhiana dropped by ₹1 per kg across various counts and varieties, driven by falling cotton prices and subdued demand. Mills showed a willingness to sell their stock even at reduced prices due to declining production costs. A trader from Ludhiana remarked told Fibre2Fashion, “Summer demand has yet to pick up, as winter sales were lacklustre due to current weather conditions. A drop in temperature could spur demand for winter garments. Improved cash flow will encourage cotton yarn buyers. Mills are also reducing prices following the recent decline in cotton prices.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹257-267 (approximately $3.05-3.16) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹247-257 (approximately $2.93-3.05) per kg and ₹252-262 (approximately $2.99-3.10) per kg, respectively; and carded yarn of 30 count was noted at ₹237-242 (approximately $2.81-2.87) per kg today, according to trade sources.

The Delhi market also saw slow demand for cotton yarn, although prices remained stable over the past few days. Market sources noted that weak export demand remains a significant concern. Domestic consumption alone cannot absorb the total production of cotton yarn. Mills are struggling to secure export orders due to price disparities, with domestic cotton prices being higher due to increased MSP. Consequently, Indian mills are importing cheaper cotton, which negatively affects the domestic cotton and yarn market.

In this market, 30 count combed knitting yarn was traded at ₹260-262 (approximately $3.08-3.10) per kg (GST extra), 40 count combed at ₹282-290 (approximately $3.34-3.44) per kg, 30 count carded at ₹237-239 (approximately $2.81-2.83) per kg, and 40 count carded at ₹262-265 (approximately $3.11-3.14) per kg today.

In Panipat, recycled yarn, cotton comber, and recycled polyester fibre prices remained steady. Traders indicated that demand for home furnishing products has declined since Diwali. However, blankets and winter clothing continued to perform well in the market. Despite this, demand for recycled yarn from this segment is insufficient to consume the large production volumes in Panipat and nearby areas. Recycled yarn producers chose to reduce sales rather than cut prices, keeping the prices of recycled yarn and its raw materials stable in recent weeks.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.92-0.97) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.63-0.66) 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 $1.54-1.60) per kg. Cotton comber prices were noted at ₹100-102 (approximately $1.18-1.21) per kg. Recycled polyester fibre (PET bottle fibre) noted at ₹78-82 (approximately $0.92-0.97) per kg today.

Cotton prices in north India fell further by ₹30-40 per maund (37.2 kg) since late last week due to subdued demand from spinning mills. According to a trader, seed cotton prices have approached the MSP, prompting the Cotton Corporation of India (CCI) to begin procurement. However, CCI’s purchasing activity has yet to gain momentum, which has contributed to the downward trend in natural fibre prices. Traders mentioned that CCI’s procurement is currently limited to a few centres in upper Rajasthan. Cotton arrivals have also slowed, as farmers are reluctant to sell their cash crop.

In north India, cotton arrivals declined to 15,700 bales (170 kg each), including 700 bales in Punjab, 5,000 bales in Haryana, 5,000 bales in upper Rajasthan, and 5,000 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,590 to ₹5,600 (approximately $66.24-66.36) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,570 to ₹5,580 (approximately $66.00-66.12). In upper Rajasthan, prices were between ₹5,580 and ₹5,600 (approximately $66.12-66.36) per maund. In lower Rajasthan, prices ranged from ₹53,300 to ₹54,300 (approximately $631.57-643.42) per candy (356 kg). Seed cotton was priced at ₹7,400-7,500 (approximately $87.68-88.87) per quintal (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)