Rupee's fall boosts cotton yarn trade, prices rise slightly in Delhi

The declining rupee is a positive factor for the cotton yarn trade, as per market experts. Despite the tight payment conditions, spinning mills are looking to increase their selling rates, expecting higher demand from importers in other countries. The Panipat market also noticed a decrease in recycled polyester fibre, with prices dropping by ₹2 per kg. Nevertheless, recycled yarn prices continued to be stable amid slow demand. Cotton comber was traded at previous levels.

In the Delhi market, cotton yarn traded slightly higher. The prices increased by ₹1-2 per kg as mills focused on export sales. A trader from the Delhi market told Fibre2Fashion, “The domestic market is still facing slow demand due to a payment crisis. It may continue for a couple of weeks. However, the falling rupee against the US dollar has provided relief to spinning mills. They are focusing on export sales rather than domestic sales. Therefore, market prices gained slightly.”

In Delhi, 30 count combed knitting yarn was traded at ₹262-263 (approximately $2.99-3.00) per kg (GST extra), 40 count combed at ₹290-291 (approximately $3.31-3.32) per kg, 30 count carded at ₹238-240 (approximately $2.72-2.74) per kg, and 40 count carded at ₹264-265 (approximately $2.99-3.03) per kg today.

The Ludhiana market experienced slow demand from the consumer industry. Cotton yarn prices were stable in the market. However, spinning mills are attempting to raise prices due to better export prospects. According to market sources, weak local demand did not support a price rise from spinning mills. Slow payment movement is affecting sentiments and buyers’ capacity for new purchases. However, they expect more export orders from overseas buyers as they benefit from the falling rupee against the US dollar.

In Ludhiana, 30 count cotton combed yarn was sold at ₹260-270 (approximately $2.97-3.08) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹250-260 (approximately $2.86-2.97) per kg and ₹255-265 (approximately $2.91-3.03) per kg, respectively; and carded yarn of 30 count was noted at ₹240-245 (approximately $2.74-2.80) per kg today, according to trade sources.

India’s home textile hub, Panipat, saw a decrease of ₹2 per kg in recycled polyester fibre. Fibre manufacturing units raise prices when they obtain PET bottles, the raw material for recycled polyester fibre. Weaker demand from the downstream industry also dampened demand for recycled polyester fibre. The recycled yarn market is still facing slow demand. Manufacturing activities in the entire value chain of home textiles were weak. There was no significant movement in the prices of recycled yarn and cotton comber.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.89-0.94) 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 ₹96-102 (approximately 1.10-1.16) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.48-1.54) per kg. Cotton comber prices were noted at ₹101-106 (approximately $1.15-1.21) per kg and recycled polyester fibre (PET bottle fibre) at ₹79-82 (approximately $0.90-0.94) per kg today.

In north India, cotton prices were stable amid decreasing arrivals and gains in ICE cotton. The global cotton market opened on Monday with a slight increase. Traders said that north India’s cotton prices observed a steady trend and prices may see an upward trend if ICE cotton supports it. Decreasing arrivals and substantial procurement by the Cotton Corporation of India (CCI) will also provide support to domestic cotton prices.

North India’s cotton arrival was 9,100 bales of 170 kg, comprising 600 bales in Punjab, 2,500 bales in Haryana, 3,500 bales in upper Rajasthan, and 2,500 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,510 to ₹5,520 (approximately $62.90-63.02) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,490 to ₹5,510 (approximately $62.68-62.90). In upper Rajasthan, cotton was priced between ₹5,525- ₹5,545 (approximately $63.08-63.30) per maund. In lower Rajasthan, it was priced at ₹52,500 to ₹53,600 (approximately $599.36-611.92) per candy of 356 kg. Meanwhile, seed cotton was priced at ₹7,100-7,400 (approximately $81.06-84.48) 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)