Positivity in north Indian cotton yarn market as ex-factory rates up

The Ludhiana market witnessed a rise in cotton yarn prices, trading higher by approximately ₹2 per kg. This surge is attributed to mills enhancing the ex-factory rates of cotton yarn to offset the additional production costs incurred due to more expensive cotton. A trader from the Ludhiana market told Fibre2Fashion, "Spinners were able to increase their ex-factory rates because they have already sold significant quantities in the export market. Domestic buyers have been purchasing cotton yarn on a regular basis. However, they have not been very aggressive in buying." 

Current rates (inclusive of GST) in Ludhiana are as follows: 30 count cotton combed yarn at ₹264-274 per kg, 20 and 25 count combed yarn at ₹254-264 per kg and ₹260-270 per kg respectively, and carded yarn of 30 count at ₹244-250 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Delhi market also echoed a stability in cotton yarn prices due to regular demand from the downstream industry and an uplifted market sentiment following the increase in ex-factory rates of cotton yarn. A trader from the Delhi market told F2F, "Mills have booked export orders from Bangladesh and China. This has provided confidence to the spinning mills, encouraging them to raise the domestic prices of cotton yarn. However, the market rate of cotton yarn has remained steady." 

The current trading figures in Delhi, as documented by TexPro, are as follows: 30 count combed yarn at ₹267-272 per kg (GST extra), 40 count at ₹297-302 per kg, 30 count carded at ₹237-242 per kg, and 40 count carded at ₹267-272 per kg. 

Contrastingly, Panipat’s recycled yarn market observed no fluctuations in prices, enduring a prolonged period of bearish demand. There was no significant improvement in the retail products segment's demand, with traders and millers striving to maintain the existing price levels for recycled yarn. In Panipat, 10s recycled PC yarn (Grey) was traded at ₹77-82 per kg (GST Paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹50-54 per kg, 20s recycled PC yarn (Grey) at ₹92-97 per kg and 30s recycled PC yarn (Grey) at ₹135-145 per kg. Comber prices were hovering at ₹133-135 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹73-75 per kg. 

Despite a declining trend in ICE cotton, cotton prices in north India remained stable, albeit discouraging to local buyers due to the recent surge in cotton costs. The market sentiment is generally weak, although there is a necessity for the domestic weaving industry and traders to acquire cotton owing to insufficient stock levels. Cotton arrivals are steadily increasing, with recent figures showcasing 9,200 bales of 170 kg reaching the region. The state-wise distribution includes Haryana with 5,500 bales, Punjab with 1,000, upper Rajasthan 1,200 and lower Rajasthan 1,500 bales. The new cotton prices are holding at ₹6,325-6,350 per maund of 37.2 kg across north India. 

ALCHEMPro News Desk (KUL)