North Indian cotton yarn prices continue to be stable; sentiments weak

Polyester-cotton yarn demand remains strong amid the summer garment production boost, but cotton yarn prices are stable due to sluggish demand, especially in the Ludhiana and Delhi markets. Weak export demand is a key concern. Globally, cotton garments are more affordable than domestically, yet there's no uptick in global demand. Major European and US importers are buying fewer garments and textiles. In Panipat, recycled yarn and raw material prices are stable, mirroring weak downstream textile demand. 

In the Ludhiana market, cotton yarn prices remained stable as demand from the weaving industry was still not encouraging. Although PC yarn demand was better, it could not support cotton yarn because diverting demand from PC to cotton was not feasible. A trader from the Ludhiana market told Fibre2Fashion, “PC yarn has seen strong demand due to the ramp-up in summer season garment manufacturing. However, cotton yarn prices have not seen any improvement. They will only find support when export demand increases.” 

In Ludhiana, 30 count cotton combed yarn was sold at ₹252-262 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹242-252 per kg and ₹247-257 per kg respectively; and carded yarn of 30 count was noted at 232-237 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Delhi market also observed a steady trend in cotton yarn, noting slow demand from the weaving industry. A trader from the Delhi market told F2F, “There was no positive sign in the cotton yarn trade because export demand is still very weak. Cotton garments have a vast market in other developed markets, which are currently showing limited buying at the retail level.” 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, according to TexPro. 

India's home textile hub, Panipat, experienced limited demand across the entire value chain. Buyers were uncertain about demand from the downstream value chain. According to trade sources, demand for home textiles has not yet picked up. Both domestic and global markets were quiet regarding their products. Overproduction capacity in Panipat was another concern for the entire industry. Most counts and varieties of yarn, cotton comber, and recycled polyester fibre were also sold at stable prices. 

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. 

Cotton prices in north India witnessed a steady trend due to lower buying interest from spinning mills. However, limited buying from the Cotton Corporation of India (CCI) was a positive factor for the market. According to traders, spinners were not actively engaging in fresh buying. They showed more interest in buying from central states like Gujarat and Maharashtra due to the lower quality of cotton in north India. Despite the lower arrivals, cotton prices remained stable. Arrivals reduced to 29,000 bales of 170 kg each from 31,000 bales in daily arrivals last week. State-wise, arrivals were noted as 4,000 bales from Punjab, 7,000 from Haryana, 10,000 from upper Rajasthan, and 8,000 from lower Rajasthan. Cotton was priced in Punjab at ₹5,325-5,425, in Haryana at ₹5,300-5,400, and in upper Rajasthan at ₹5,250-5,500 per maund of 37.2 kg. Shri Ganganagar line cotton traded at ₹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)