North Indian yarn market down due to falling cotton prices

The Ludhiana market witnessed a declining trend in cotton yarn prices, easing down by ₹2 per kg across most counts and varieties due to limited demand from fabric manufacturers. A trader from Ludhiana told Fibre2Fashion, "Cotton yarn demand is not picking up. Seasonally, it should increase for the coming festival and winter season. Actually, huge imports of fabric and garments are hurting the domestic industry severely. Imported supplies are eating into demand in the textile value chain."

In Ludhiana, 30 count cotton combed yarn was sold at ₹265-275 (approximately $3.17-3.29) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹255-265 (approximately $3.05-3.17) per kg and ₹260-270 (approximately $3.11-3.23) per kg, respectively; and carded yarn of 30 count was noted at ₹245-250 (approximately $2.93-2.99) per kg today, according to trade sources.

The Delhi market also noticed a fall of ₹2 per kg in cotton yarn prices due to slow demand. The downward trend in the natural fibre market also prompted yarn prices to align. Trade sources said that cotton yarn is facing pressure from both sides. Falling cotton prices are discouraging buying, and slow demand for garments and other textile products is hurting market sentiments. The market is facing uncertainty regarding the revival of demand from the downstream industry.

In this market, 30 count combed knitting yarn was traded at ₹263-265 (approximately $3.15-3.17) per kg (GST extra), 40 count combed at ₹283-290 (approximately $3.39-3.48) per kg, 30 count carded at ₹238-240 (approximately $2.85-2.87) per kg, and 40 count carded at ₹263-266 (approximately $3.15-3.18) per kg today.

India’s home textile hub, Panipat, also noted a bearish trend amid weak demand for home furnishing products. However, poor demand from the home textile segment was offset by demand for small products like socks and handkerchiefs in the garment segments. Manufacturers are turning to recycled yarn to protect their margins, keeping recycled yarn prices stable. Cotton comber, a waste product of cotton, eased down by ₹2 per kg after a drop in the natural fibre prices. Recycled polyester staple fibre gained up to ₹3 per kg as domestic manufacturers of virgin polyester staple fibre increased prices.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.94-0.98) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.64-0.67) per kg, 20s recycled PC yarn (Grey) at ₹90-95 (approximately 1.08-1.14) per kg and 30s recycled PC yarn (Grey) at ₹128-132 (approximately $1.54-1.58) per kg. Cotton comber prices were noted at ₹108-110 (approximately $1.29-1.32) per kg and recycled polyester fibre (PET bottle fibre) at ₹76-81 (approximately $0.91-0.97) per kg today.

In North India, cotton traded lower after a decrease in ICE cotton. The natural fibre eased by ₹25 per maund of 37.2 kg as buying was discouraged by the price fall in the global cotton market. Traders said that mills were very cautious about buying amid falling ICE cotton and uncertainty regarding retail demand for garments. Ginning mills, stockists, and MNCs are selling cotton from their stocks. According to market estimates, around 80 per cent of cotton sold in north India came from stocks. Cotton arrival is falling and is not enough to meet the demand of the consumer industry.

Today’s arrival was 700 bales of 170 kg in north India. State-wise arrivals were noted as Haryana 600 bales, upper Rajasthan 50 bales, and lower Rajasthan 50 bales. Cotton prices in Punjab ranged from ₹5,700 to ₹5,725 (approximately $68.23-68.53) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,600 to ₹5,700 (approximately $67.03-68.23). In upper Rajasthan, cotton was priced between ₹5,400 and ₹5,725 (approximately $64.64-68.53) per maund. Bikaner line cotton sold for ₹5,725 to ₹5,825 (approximately $68.53-69.72) per maund. In lower Rajasthan, cotton was priced at ₹53,300 to ₹56,500 (approximately $637.98-676.28) 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)