North Indian cotton yarn prices surge amid limited supply of cotton

Yarn prices saw an increase of ₹3-5 per kg in the Delhi and Ludhiana markets in northern India over the past few days. Traders attributed this rise in yarn prices to the increase in raw material costs. However, there was no significant increase in demand from downstream industries. The Panipat market witnessed a rise of ₹3-4 per kg in cotton comber prices, supported by the demand for natural fibre. Trade experts noted that there was no significant improvement in the demand for home textile products and its value chain.

A trader from the Ludhiana market told Fibre2Fashion, "Mills were aggressively raising yarn prices, which supported market prices. Buyers were cautious about purchasing at higher prices due to the lack of expected demand for downstream products. Nevertheless, prices may remain firm due to the positive outlook for natural fibre."

In Ludhiana, 30 count cotton combed yarn was sold at ₹266-276 per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹256-266 per kg and ₹262-272 per kg, respectively. Carded yarn of 30 count was priced at ₹246-253 per kg, according to Fibre2Fashion's market insight tool TexPro.

A trader based in Delhi told F2F, “Buyers were uncomfortable with the sharp rise in cotton yarn prices. They did not observe encouraging demand from the garment industry. However, the upcoming summer season may signal a positive trend for cotton yarn trade, as demand for cotton garments typically increases during this period.” In this market, 30 count combed yarn was traded at ₹266-270 per kg (excluding GST), 40 count combed at ₹291-295 per kg, 30 count carded at ₹243-248 per kg, and 40 count carded at ₹270-273 per kg.

India’s home textile hub, Panipat, noted an increase in cotton comber prices following a recent rise in cotton prices, with comber prices rising by ₹2-3 per kg. However, recycled yarn and recycled polyester fibre prices remained stable. Traders reported that the increase in comber prices was driven by the rise in cotton prices, but consumer demand did not show any improvement. The market experienced average demand and supply across the entire value chain of home textiles.In Panipat, 10s recycled PC yarn (Grey) was traded at ₹76-80 per kg (inclusive of GST). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹51-54 per kg, 20s recycled PC yarn (Grey) at ₹88-93 per kg, and 30s recycled PC yarn (Grey) at ₹133-142 per kg. Cotton comber prices were noted at ₹115-117 per kg, while recycled polyester fibre (PET bottle fibre) was priced at ₹71-73 per kg, as per TexPro.

North India's cotton prices continued to rise as ICE cotton prices remained consistently high. Traders reported that spinning mills and multinational corporations (MNCs) were purchasing cotton regularly, leading to improved demand for cotton yarn despite decreasing availability. It was estimated that around 42-43 lakh bales of 170 kg each arrived in the northern region, comprising Punjab, Haryana, upper Rajasthan, and lower Rajasthan. The total production in the region was estimated at 45 lakh bales.

Today’s arrivals amounted to 14,000 bales of 170 kg each. State-wise arrivals were noted as follows: Punjab 1,000 bales, Haryana 4,500 bales, upper Rajasthan 4,500 bales, and lower Rajasthan 4,000 bales. Cotton was priced at ₹5,625-5,675 per maund of 37.2 kg in Punjab, ₹5,575-5,675 in Haryana, ₹5,450-5,700 in upper Rajasthan, and ₹5,700-5,800 per maund in Bikaner. In lower Rajasthan, cotton was priced at ₹53,600-55,800 per candy of 356 kg.

ALCHEMPro News Desk (KUL)