Optimism in north India as weather conditions boost cotton yarn demand

The Ludhiana market noticed no change in cotton yarn prices, except for optimism from the rains. This can improve cash flow in the market. Cotton yarn prices were hovering at previous levels. A trader from the Ludhiana market told Fibre2Fashion, “Rains and cloudy weather will drive demand for blankets and warm clothes. Retailers and stockists will be able to clear their stocks, which will improve cash flow in the upstream value chain. Better liquidity will improve the purchasing capacity of industries.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹257-267 (approximately $3.02-3.14) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹247-257 (approximately $2.90-3.02) per kg and ₹252-262 (approximately $2.96-3.08) per kg, respectively; and carded yarn of 30 count was noted at ₹237-242 (approximately $2.79-2.84) per kg today, according to trade sources.

The Delhi market also noticed slow trade and stability in cotton yarn prices. According to market sources, foreign buyers and exporters take a rest in the last fortnight of the year, which slows down buying from the consumer industry. After the first week of the new year, summer demand is likely to improve, which will raise sentiments in the cotton yarn trade.

In Delhi, 30 count combed knitting yarn was traded at ₹260-262 (approximately $3.06-3.08) per kg (GST extra), 40 count combed at ₹282-290 (approximately $3.31-3.41) per kg, 30 count carded at ₹237-239 (approximately $2.79-2.81) per kg, and 40 count carded at ₹262-265 (approximately $3.08-3.12) per kg today.

India’s home textile hub Panipat saw stability in recycled yarn, recycled polyester fibre, and cotton combers. However, recycled polyester fibre prices may improve next year as producers are looking to raise their prices as raw material prices have already shot up. Recycled polyester fibre producers are considering passing on the higher cost of production. Rains and cloudy weather have raised optimism in the recycled yarn market as it is the main source of supplies of raw materials. A trader said that the market is facing slow demand, but rains will improve liquidity.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.92-0.96) per kg (GST paid). Other varieties and counts were noted as 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.62-0.66) per kg, 20s recycled PC yarn (Grey) at ₹96-102 (approximately $1.13-1.20) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.53-1.59) per kg. Cotton comber prices were noted at ₹102-108 (approximately $1.20-1.27) per kg and recycled polyester fibre (PET bottle fibre) at ₹78-80 (approximately $0.92-0.94) per kg today.

In north India, cotton prices improved by ₹10-20 per maund of 37.2 kg after a dip in cotton arrivals due to rains and cloudy weather. Cotton arrivals came down to 8,500-9,000 bales on Monday from 22,000-22,500 bales last week. Traders said that farmers did not bring much cotton due to rains and cloudy weather.

North India’s cotton arrival was 22,500 bales of 170 kg, comprising 1,500 bales in Punjab, 6,000 bales in Haryana, 8,000 bales in upper Rajasthan, and 7,000 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,510 to ₹5,520 (approximately $64.72-64.84) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,510 to ₹5,520 (approximately $64.72-64.96). In upper Rajasthan, cotton was priced between ₹5,510-₹5,530 (approximately $64.72-64.96) per maund. In lower Rajasthan, it was priced at ₹52,400 to ₹53,400 (approximately $615.53-627.28) per candy of 356 kg. Seed cotton was priced at ₹7,000-7,350 (approximately $82.23-86.34) 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)