North Indian spinners benefit from weak rupee, cotton yarn stable

The yarn market is consistently observing slow demand as the market faces slow payment movement. Traders expect that payment conditions may improve in the second half of the current February, as buyers will be able to carry forward payments due to small and micro enterprises to the next fiscal without any tax implications. The Panipat market also noticed a slow demand for recycled yarn as the usual summer demand for bed sheets did not pick up. Cotton comber and recycled polyester fibre were also traded at previous levels.

The Ludhiana market noticed slow demand from the downstream industry. Cotton yarn prices were stable in the market. Mills have shifted their focus towards the export market as they have better margins following the depreciation of the Indian rupee against the US dollar. A trader from the Ludhiana market told Fibre2Fashion, “Cotton yarn demand remained slow in the domestic market; therefore, mills are not able to hike rates. Spinners wanted to sell maximum production in the export market due to the falling rupee. They can improve their margins.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹260-270 (approximately $2.97-3.08) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹250-260 (approximately $2.86-2.97) per kg and ₹255-265 (approximately $2.91-3.03) per kg, respectively; and carded yarn of 30 count was noted at ₹240-245 (approximately $2.74-2.80) per kg today, according to trade sources.

Cotton yarn was traded flat in the Delhi market as well. The market did not see any improvement in cotton yarn demand. According to market sources, cotton yarn demand has not improved yet for summer garments. Export demand in the Delhi NCR region was also slow. Mills are exporting cotton yarn at better foreign exchange rates, but they are also trying to raise domestic prices.

In Delhi, 30 count combed knitting yarn was traded at ₹260-262 (approximately $2.97-2.99) per kg (GST extra), 40 count combed at ₹282-290 (approximately $3.22-3.31) per kg, 30 count carded at ₹237-239 (approximately $2.71-2.73) per kg, and 40 count carded at ₹262-265 (approximately $2.99-3.03) per kg today.

India’s home textile hub Panipat normally sees demand for bed sheets as the summer season approaches rapidly. It supports the entire recycled yarn market. But such demand is still not visible. Manufacturing activities in the entire value chain of home textiles were weak. There was no significant movement in prices of recycled yarn, cotton comber, and recycled polyester fibre.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.89-0.94) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.61-0.64) per kg, 20s recycled PC yarn (Grey) at ₹96-102 (approximately 1.10-1.16) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.48-1.54) per kg. Cotton comber prices were noted at ₹101-106 (approximately $1.15-1.21) per kg and recycled polyester fibre (PET bottle fibre) at ₹81-84 (approximately $0.93-0.96) per kg today.

In north India, cotton prices were slightly higher due to lower arrivals. However, there was slow demand from spinning mills. ICE cotton prices eased on Wednesday due to concerns of trade tensions. Domestic cotton prices inched up by ₹10-20 per maund of 37.2 kg. Traders said that north India’s cotton production may not reach a level of 30 lakh bales. Out of it, 21 lakh bales of cotton have already arrived in the market. Cotton arrival reduced below 10,000 bales in north India. But weaker ICE cotton did not allow domestic prices to increase.

North India’s cotton arrival was 9,500 bales of 170 kg, comprising 500 bales in Punjab, 2,500 bales in Haryana, 4,000 bales in upper Rajasthan, and 2,500 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,510 to ₹5,520 (approximately $62.93-63.04) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,490 to ₹5,510 (approximately $62.70-62.93). In upper Rajasthan, cotton was priced between ₹5,530 and ₹5,550 (approximately $63.16-63.38) per maund. In lower Rajasthan, it was priced at ₹52,500 to ₹53,500 (approximately $599.57-610.99) per candy of 356 kg. While seed cotton was priced at ₹7,100-7,400 (approximately $80.29-83.73) per quintal of 100 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)