Payment woes, Chinese imports weaken north Indian cotton yarn demand

Cotton yarn prices in Ludhiana dropped by ₹2 per kg amid sluggish demand and tight liquidity. A Ludhiana-based trader told Fibre2Fashion, “Chinese polyester and Tencel fabrics are drawing attention from the consumer industry due to lower prices and better quality. Market liquidity is being pulled towards China, which is the root cause of the payment crisis. These payment constraints have further suppressed cotton yarn demand.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹255-265 (~$2.97-3.09) 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.

In contrast, cotton yarn prices remained stable in the Delhi market, which had witnessed gains of ₹2 per kg last week. According to market sources, demand remained average to weak. Mills were under pressure due to rising production costs following an increase in fibre prices. The festive season did not offer sustained support to the textile value chain, and manufacturers are reluctant to produce goods merely for stockpiling.

In Delhi, 30 count combed knitting yarn was traded at ₹259-260 (~$3.00-3.01) per kg (GST extra), 40 count combed at ₹284-285 (~$3.29-3.30) per kg, 30 count carded at ₹233-235 (~$2.70-2.72) per kg, and 40 count carded at ₹258-260 (~$2.99-3.01) per kg today.

Cotton comber prices in the Panipat market dropped by ₹2–3 per kg. Recycled polyester fibre, however, was traded at stable rates, and recycled yarn prices hovered around previous levels. Traders reported that demand for recycled yarn weakened last week. Indian producers had reduced prices of virgin polyester fibre, which dampened interest in recycled yarn and fabrics. Domestic demand for home textiles has yet to recover. The market is also closely monitoring developments in the anticipated India–US trade deal.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (~$0.87-0.90) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹60-65 (~$0.69-0.75) per kg, 20s recycled PC yarn (Grey) at ₹101-103 (~$1.17-1.19) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (~$1.50-1.56) per kg. Cotton comber prices were noted at ₹100-102 (~$1.21-1.24) per kg and recycled polyester fibre (PET bottle fibre) at ₹73-77 (~$0.84-0.89) per kg today.

Cotton prices in north India rose by ₹10–20 per maund (37.2 kg) on the first day of this week. Limited availability has allowed stockists to gradually raise prices. Traders noted that few transactions are taking place, as most ginners and stockists have already exhausted their inventories. This scarcity is driving prices upward, though yarn and fabric markets remain under pressure due to slow movement.

Cotton arrivals in north India have reduced to negligible levels, with only previously stocked cotton being traded. In Punjab, cotton prices ranged from ₹5,980-5,990 (~$69.11–69.23) per maund; in Haryana, ₹5,710–5,820 (~$65.99–67.26); in upper Rajasthan, ₹5,990–6,020 (~$69.23–69.57); and in lower Rajasthan, ₹55,300–₹57,300 (~$639.09–662.21) 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)