North Indian cotton yarn trade faces weak demand, US worries

The Ludhiana market witnessed average demand for cotton yarn, with spinners struggling to maintain prices. A trader from Ludhiana told Fibre2Fashion, “Spinning mills are under pressure to lower their selling prices. The availability of fine-quality polyester yarn is also a concern for the cotton yarn trade. Cheaper imports of polyester fabric are eating into the cotton yarn market.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 (~$3.01-3.12) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 (~$2.89-3.01) per kg and ₹253-263 (~$2.95-3.07) per kg, respectively; and carded yarn of 30 count was noted at ₹238-243 (~$2.77-2.83) per kg today, according to trade sources.

The Delhi market also continued to witness weak demand for cotton yarn. Stockists were inclined to offer lower prices but faced difficulty in finding buyers. According to a trader from the market, Indian exporters are hopeful for orders from US buyers for the upcoming Christmas season. However, tariff-related concerns remain a major obstacle for importers. Traders expect such uncertainties to discourage US buyers from placing new garment orders.

In Delhi, 30 count combed knitting yarn was traded at ₹260-261 (~$3.03-3.04) per kg (GST extra), 40 count combed at ₹285-286 (~$3.32-3.33) per kg, 30 count carded at ₹234-236 (~$2.73-2.75) per kg, and 40 count carded at ₹259-261 (~$3.02-3.04) per kg today.

In Panipat, India’s home textile hub, recycled yarn prices remained mostly stable but recycled polyester fibre and cotton comber prices eased. Demand across all varieties of recycled yarn was reported to be very slow. Cotton comber prices fell by ₹3–4 per kg, while recycled polyester fibre dropped by ₹1–2 per kg. Trade sources attributed this decline to weak demand from the downstream industry.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (~$0.87-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹52-55 (~$0.61-0.64) per kg, 20s recycled PC yarn (Grey) at ₹95-99 (~$1.11-1.16) per kg and 30s recycled PC yarn (Grey) at ₹128-134 (~$1.49-1.56) per kg. Cotton comber prices were noted at ₹100-103 (~$1.17-1.20) per kg and recycled polyester fibre (PET bottle fibre) at ₹74-79 (~$0.86-0.92) per kg today.

Cotton prices in north India opened the week on a steady note, with thin trade due to low arrivals. Ginners and stockists held limited stock, resulting in restricted activity. Traders said that cotton arrivals are in the final phase of the current season. Although the season officially ends in September, arrivals in north India are expected to drop to negligible levels within the next one to two weeks. Spinning mills remain inactive, relying on the availability of cotton stock from the Cotton Corporation of India (CCI) when needed. Sluggish domestic and export demand for yarn and other downstream products has further dampened cotton demand.

North India’s cotton arrivals totalled 700 bales (170 kg each), comprising 500 bales in Haryana and 200 in upper Rajasthan. No fresh arrivals were reported in lower Rajasthan and Punjab. Cotton prices in Punjab ranged from ₹5,700-5,710 (~$66.55–66.67) per maund (37.2 kg); in Haryana, ₹5,530–5,580 (~$64.56–65.15); and in upper Rajasthan, ₹5,680–5,740 (~$66.80–67.02). In lower Rajasthan, prices were noted at ₹53,200–54,500 (~$621.13–636.30) per candy (356 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)