North Indian cotton yarn market bearish; comber down as output rises

The Ludhiana market is grappling with reduced demand, exacerbated by an influx of cheaper fabric imports from China. Although the festival season typically boosts cotton yarn demand, this has not been the case as imported fabric continues to dominate the market. Prices of cotton yarn have declined by ₹1-2 per kg since last week. A trader from Ludhiana informed Fibre2Fashion, "There has been no uptick in demand. Both mills and traders are facing difficulties in clearing their existing stock." According to Fibre2Fashion's market insight tool TexPro, 30-count cotton combed yarn traded between ₹264-274 per kg (GST inclusive). Similarly, 20 and 25-count combed yarn were traded at ₹254-264 per kg and ₹259-269 per kg, respectively. The price for carded yarn of 30-count stood at ₹244-249 per kg. 

The Delhi cotton yarn market has also observed stability, largely due to restricted demand from the downstream industry. Even the ongoing festival season has failed to invigorate the bearish domestic market. A trader in Delhi told F2F, "The current festival season has not managed to lift market sentiments. Essentially, the weak demand from the downstream industry is due to sluggish export demand." According to TexPro, the trading range for 30-count combed yarn was ₹267-272 per kg (GST extra), 40-count combed yarn at ₹297-302 per kg, 30-count carded yarn at ₹237-242 per kg, and 40-count carded yarn at ₹267-272 per kg. 

Panipat's recycled yarn market has held steady, primarily due to limited trading activity. The ongoing festival season has failed to rejuvenate the market, with a local trader indicating that the weak demand could easily be met from existing stockpiles. The home furnishing industry is caught in a quandary between sluggish retail demand and escalating costs for raw materials such as combers and rugs made from old clothes. In Panipat, prices for 10s recycled PC yarn (Grey) were stable at ₹77-82 per kg (GST paid). Other grades, like 10s recycled PC yarn (Black), were traded at ₹50-54 per kg, 20s recycled PC yarn (Grey) at ₹92-97 per kg, and 30s recycled PC yarn (Grey) at ₹135-145 per kg. Meanwhile, cotton comber prices dropped to ₹123-125 per kg, showing a decline of ₹10 per kg over the last two weeks. Prices for recycled polyester fibre made from PET bottles were noted at ₹74-76 per kg. 

In north India, cotton prices have weakened, falling ₹125-150 per maund (37.2 kg) over the past week due to an influx of supply and limited buying by spinning mills. Trade sources indicate that cotton arrivals have been steadily increasing, reaching 22,000 bales in the region. The peak arrival season is still anticipated. Cotton priced without an RD guarantee was lower by ₹100 per maund. State-wise, Punjab contributed 3,000 bales, Haryana 9,000, upper Rajasthan 5,000, and lower Rajasthan another 5,000 bales. Prices ranged from ₹6,050-6,075 per maund of 37.2 kg in Punjab, ₹5,975-6,000 in Haryana, and ₹5,900-6,000 in upper Rajasthan. In lower Rajasthan, the natural fibre was priced between ₹57,500 and ₹58,500 per candy of 356 kg. 

ALCHEMPro News Desk (KUL)