North Indian cotton yarn market eyes new year for revival

In north India's cotton yarn market, especially in Punjab's Ludhiana, demand uncertainties and reduced garment export orders have led to a minor price drop of ₹2 per kg across various counts and types of cotton. Conversely, Delhi's market remained stable, albeit with limited trade due to the year's end. Chinese and Bangladeshi importers are pushing for lower prices, but domestic mills resist due to high production costs. Market sentiment suggests a clearer trend might emerge in the new year, with some optimism in Panipat's recycled yarn market and hopes for an upturn in the home textile segment after a prolonged downturn in 2023. 

In Ludhiana, market sentiments were weak in the cotton yarn trade as demand remained low. Garment manufacturing units were slow in purchasing fabric, which decreased demand in the weaving and spinning industries. Cotton yarn export demand was also sluggish due to disagreements between exporters and importers over rates. A trader from the Ludhiana market told Fibre2Fashion, "Cotton yarn export orders were very limited. Mills were not agreeing to reduce the prices of cotton yarn as demanded by foreign buyers. Recessionary pressure led to tough negotiations over prices." 

In Ludhiana, Cotton yarn prices eased by ₹2 per kg for various counts and varieties. The 30 count cotton combed yarn was sold at ₹250-260 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹240-250 per kg and ₹245-255 per kg respectively; and carded yarn of 30 count was noted at 230-235 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Delhi market also noted subdued demand from the weaving industry. Cotton yarn trade was sparse in the last week of this year. A trader from the Delhi market told F2F, "Foreign buyers were not active in making new purchases in the last week of the current year. We have to wait for clear market directions in the new year. The present market sentiments are not very encouraging." In this market, 30 count combed yarn was traded at ₹250-255 per kg (GST extra), 40 count combed at ₹275-280 per kg, 30 count carded at ₹227-231 per kg, and 40 count carded at ₹252-255 per kg, as per TexPro. 

There was a sense of optimism in India's home textile hub, Panipat, as well. Recycled yarn continued to trade at previous levels, but traders were hopeful for some improvement in market dynamics in the new year. A trader noted that after robust demand in 2022, the home textile segment faced a slowdown in the current year. However, there is hope that domestic and export demand will improve in the new year. Recycled polyester fibre was traded higher by ₹1-2 per kg following a rise in virgin PSF and its raw material. 

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹74-78 per kg (GST paid). Other varieties and counts were noted as 10s recycled PC yarn (Black) at ₹49-52 per kg, 20s recycled PC yarn (Grey) at ₹85-90 per kg and 30s recycled PC yarn (Grey) at ₹133-142 per kg. Cotton comber prices were noted at ₹112-114 per kg and recycled polyester fibre (PET bottle fibre) at ₹70-73 per kg. 

North India cotton prices were steady amid regular buying from spinning mills. Cotton arrival was slightly higher in the cotton-growing states of north India. Traders indicated that spinning mills were purchasing cotton regularly. Open-end mills preferred to buy lower-quality, cheaper cotton. A pink bollworm attack affected cotton quality, leading to an estimated 30 per cent of the market arrival being of lower quality, while an equal amount was of average quality. The region's cotton arrival was around 25,500 bales of 170 kg each. State-wise arrivals were noted as: 3,500 bales from Punjab, 7,000 bales from Haryana, 7,500 from upper Rajasthan, and 7,500 bales from lower Rajasthan. Cotton was priced in Punjab at ₹5,450-5,550, in Haryana at ₹5,430-5,550, and in upper Rajasthan at ₹5,250-5,600 per maund of 37.2 kg. Shri Ganganagar line cotton traded ₹100-125 per maund lower due to poor quality. In lower Rajasthan, cotton was priced at ₹52,000-54,000 per candy of 356 kg. 

ALCHEMPro News Desk (KUL)