North Indian cotton yarn trade slows despite tariff relief

The Ludhiana market saw no movement in cotton yarn prices and witnessed only average demand. A trader from Ludhiana told Fibre2Fashion, “Rising cotton prices are pushing up the cost of yarn production at the mill level. Spinning mills have lost their margins and are struggling to stay afloat, as they are unable to pass on the increased cost of production. If cotton prices continue to rise, mills will be forced to raise yarn selling prices. However, they are facing subdued demand from the downstream industry.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹255-265 (~$2.98-3.09) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹245-255 (~$2.86-2.98) per kg and ₹250-260 (~$2.92-3.03) per kg, respectively; and carded yarn of 30 count was noted at ₹235-240 (~$2.74-2.80) per kg today, according to trade sources.

The Delhi market also witnessed stability in cotton yarn prices after a rise earlier this week. Prices had increased by ₹2 per kg due to costlier raw materials. However, buying interest remained weak. Market sources reported that buyers are still uncertain about export orders from the US. The short extension of the tariff pause has not provided sufficient relief to the market, as US buyers are unable to plan their procurement strategies in such a limited timeframe. Additionally, tariff announcements affecting several countries have raised broader concerns for global trade.

In Delhi, 30 count combed knitting yarn was traded at ₹257-258 (~$3.00-3.01) per kg (GST extra), 40 count combed at ₹282-283 (~$3.29-3.30) per kg, 30 count carded at ₹231-233 (~$2.70-2.72) per kg, and 40 count carded at ₹256-258 (~$2.99-3.01) per kg today.

India’s home textile hub Panipat also reported muted demand for finished products, which in turn discouraged raw material procurement. Recycled yarn was traded at previous levels amid sluggish demand. The home textile export season is about to begin, with foreign buyers expected to place orders for year-end sales. However, there has been no noticeable movement in recycled yarn trading so far.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (~$0.88-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹60-65 (~$0.70-0.76) per kg, 20s recycled PC yarn (Grey) at ₹101-103 (~$1.18-1.20) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (~$1.52-1.58) per kg. Cotton comber prices were noted at ₹98-101 (~$1.14-1.18) per kg and recycled polyester fibre (PET bottle fibre) at ₹75-79 (~$0.88-0.92) per kg today.

In north India, cotton prices rose further by ₹10–20 per maund (37.2 kg) following an increase in the auction base price by the Cotton Corporation of India (CCI). This year, the government’s trading arm CCI is dominating the market. Private traders and ginners are largely following CCI’s lead on prices. A trader from Punjab noted that private ginners and stockists have negligible cotton stocks, and there has been no significant trade in the private market. Spinning mills are sourcing cotton directly from CCI’s stock. According to market sources, demand for cotton is steady, and mills need to keep operations running—although they are not operating at full capacity in yarn production.

Cotton arrivals in north India have dwindled to negligible levels, with total arrivals not exceeding 100 bales across the entire region. Stocked cotton is currently being traded. Cotton prices in Punjab ranged from ₹5,910-5,920 (~$68.97–69.09) per maund of 37.2 kg; in Haryana, ₹5,650–5,730 (~$65.94–66.76); in upper Rajasthan, ₹5,930–5,950 (~$69.20–69.44). In lower Rajasthan, prices stood at ₹54,700–56,400 (~$638.36–658.20) per candy of 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)