Steady cotton yarn prices prevail amid festive season in north India

The Ludhiana market has witnessed a steady trend in cotton yarn prices amid limited trade. However, the market has seen higher demand for winter hosiery garments. A trader from the Ludhiana market informed Fibre2Fashion, “Cotton yarn prices are unlikely to receive support until there is an increase in export demand. Domestic demand is also expected to remain limited until Diwali, as the upstream cotton yarn and fabric industry will not see significant growth. Currently, garment manufacturers are making efforts to place their clothing consignments on retail counters during this festive season.” 

The 30 count cotton combed yarn was sold at ₹259-269 per kg (inclusive of GST), while the 20 and 25 count combed yarns were traded at ₹249-259 per kg and ₹254-264 per kg, respectively. Carded yarn of 30 count was observed at ₹239-244 per kg in Ludhiana, as reported by Fibre2Fashion’s market insight tool, TexPro. 

The Delhi market also experienced stability in cotton yarn prices while being immersed in the festive mood. A trader from the Delhi market told F2F, “The market did not receive many trade enquiries from the downstream industry, as traders and buyers were busy enjoying the festival of Dussehra.” The prices were as follows: 30 count combed yarn was traded at ₹260-265 per kg (excluding GST), 40 count combed at ₹290-295 per kg, 30 count carded at ₹235-240 per kg, and 40 count carded at ₹265-270 per kg, according to TexPro. 

Panipat's recycled yarn market has observed a steady trend despite weak demand. Traders and manufacturers are not anticipating a significant improvement in the purchase of home furnishing products at the retail level. They mentioned that both the domestic and export markets are not providing support. However, it's worth noting that the product lines are distinct for domestic and international markets, making cross-market sales unfeasible. 

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹74-78 per kg (GST Paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) ₹49-52 per kg, 20s recycled PC yarn (Grey) at ₹90-95 per kg and 30s recycled PC yarn (Grey) at ₹133-142 per kg. However, cotton comber prices were noted at ₹119-120 per kg. Recycled polyester fibre (PET bottle fibre) was ₹72-73 per kg. 

Cotton prices in north India have remained stable despite moderate purchasing by spinning mills. Although ICE cotton experienced a decrease, domestic cotton prices did not witness a significant drop. Traders have noted that farmers are reluctant to sell their crops at lower prices because they anticipate an opportunity to sell to the government at the minimum support price (MSP). The government has increased the MSP by almost 10 per cent, setting it at ₹7,020 per quintal for long staple unginned cotton (Kapas or Narma) and ₹6,620 per quintal for medium staple cotton. Currently, unginned cotton prices are fluctuating between ₹6,500-7,100 per quintal. 

Cotton arrivals in north India have been reported at 27,000 bales, each weighing 170 kg. The arrivals by state are as follows: Punjab 3,000 bales, Haryana 8,000 bales, upper Rajasthan 8,000 bales, and lower Rajasthan 8,000 bales. Cotton prices in Punjab were in the range of ₹5,640-5,740, in Haryana at ₹5,630-5,740, and in upper Rajasthan at ₹5,475-5,625 per maund (equivalent to 37.2 kg). In lower Rajasthan, the natural fibre was priced at ₹55,000-56,500 per candy (356 kg). Notably, cotton was trading ₹150-200 per maund higher in the Bikaner line compared to the Shri Ganganagar belt due to its better quality. 

ALCHEMPro News Desk (KUL)