Payment issues hit north Indian cotton yarn, prices drop in Delhi

Cotton yarn prices declined by ₹3-5 per kg in the Delhi market due to reduced buying interest from the consumer industry. A trader from the Delhi market told Fibre2Fashion, “Cotton yarn demand has further slowed down as payment issues are preventing buyers from making fresh deals. Everyone is focused on tax planning and liquidity management. Slow demand may persist for the next couple of weeks. Payment regulations have added to the woes of the cotton yarn trade, which is already struggling with weak demand and price disparities in the global market.”

In Delhi, 30 count combed knitting yarn was traded at ₹259-260 (approximately $2.99-3.00) per kg (GST extra), 40 count combed at ₹284-285 (approximately $3.28-3.29) per kg, 30 count carded at ₹233-235 (approximately $2.69-2.71) per kg, and 40 count carded at ₹258-260 (approximately $2.98-3.00) per kg today.

Unlike Delhi, the Ludhiana market did not witness a price drop in cotton yarn. However, demand remained slow to average as payment constraints continued to be a concern throughout the value chain. According to traders, buyers showed little interest in stocking cotton yarn. The current payment issues have weakened the purchasing capacity of buyers, while slow demand from the garment industry has further discouraged buying activity across the value chain.

In Ludhiana, 30 count cotton combed yarn was sold at ₹260-270 (approximately $3.00-3.12) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹250-260 (approximately $2.88-3.00) per kg and ₹255-265 (approximately $2.94-3.06) per kg, respectively; and carded yarn of 30 count was noted at ₹240-245 (approximately $2.77-2.83) per kg today, according to trade sources.

India’s home textile hub, Panipat, is also experiencing payment challenges. Demand for recycled yarn remains weak. Regarding stable prices, traders explained that mills are unable to reduce their selling prices as they are already operating at minimum price levels. Additionally, higher raw material costs have increased their production expenses. Traders anticipate better demand for bed sheets during the summer season, provided pricing issues ease.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹77-80 (approximately $0.89-0.92) 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 ₹96-100 (approximately 1.11-1.15) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.50-1.56) per kg. Cotton comber prices were noted at ₹105-108 (approximately $1.21-1.25) per kg and recycled polyester fibre (PET bottle fibre) at ₹79-82 (approximately $0.91-0.94) per kg today.

In north India, cotton prices slipped by ₹10-20 per maund (37.2 kg). ICE cotton exhibited a declining trend, dampening market sentiment. Cotton arrivals halved on Thursday due to light to heavy rains in most parts of north India. However, lower arrivals failed to support cotton prices as mills showed little interest in stocking cotton at current levels, with no immediate price increase expected. Cotton arrivals declined to approximately 5,000 bales (170 kg each), compared to the usual daily arrivals of 9,000-10,000 bales.

North India's total cotton arrivals were 5,300 bales (170 kg each), comprising 300 bales in Punjab, 1,500 bales in Haryana, 2,000 bales in upper Rajasthan, and 1,500 bales in lower Rajasthan. In Punjab, cotton prices ranged from ₹5,550 to ₹5,560 (approximately $64.04-64.15) per maund (37.2 kg), while in Haryana, they ranged from ₹5,530 to ₹5,550 (approximately $63.81-64.04). In upper Rajasthan, cotton was priced between ₹5,560 and ₹5,580 (approximately $64.15-64.38) per maund. In lower Rajasthan, cotton prices ranged from ₹52,700 to ₹54,000 (approximately $608.05-623.05) per candy (356 kg). Meanwhile, seed cotton was priced at ₹7,000-7,350 (approximately $81.77-84.65) per quintal (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)