US tariff hike dampens cotton yarn trade in north India

Cotton yarn prices remained unchanged in the Delhi market. Buyers stayed cautious amid fears of a chain reaction stemming from the tariff hike. A Delhi-based trader told Fibre2Fashion, “If India and the US cannot resolve the issue in the next few days, foreign buyers may rush to realign their purchase orders. They may ask for discounts or hold shipments. This will dampen buying sentiment across the textile value chain.”

In Delhi, 30 count combed knitting yarn was traded at ₹259-260 (~$2.96-2.97) per kg (GST extra), 40 count combed at ₹284-285 (~$3.24-3.25) per kg, 30 count carded at ₹233-235 (~$2.66-2.68) per kg, and 40 count carded at ₹258-260 (~$2.94-2.97) per kg today.

The Ludhiana market also witnessed weak demand from the consumer industry, although domestic buying kept activity afloat. Cotton yarn prices remained steady over the past few days. According to trade sources, Ludhiana is a primarily domestic market-oriented yarn hub, which remains unaffected. However, a payment crisis is impacting cotton yarn demand. Buyers remained wary following US President Donald Trump’s announcement of the tariff hike.

In Ludhiana, 30 count cotton combed yarn was sold at ₹255-265 (~$2.91-3.02) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹245-255 (~$2.80-2.91) per kg and ₹250-260 (~$2.85-2.97) per kg, respectively; and carded yarn of 30 count was noted at ₹235-240 (~$2.68-2.74) per kg today, according to trade sources.

Traders expressed concern over the slowdown in home textile export orders from the US, as the tariff hike renders prices uncompetitive. Recycled yarn prices remained stable in the Panipat market. However, traders noted no improvement in export demand. Market participants remain hopeful for a pick-up in demand during the upcoming festive season. Recycled polyester fibre and comber also traded at stable prices.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹74-77 (~$0.84-0.88) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹57-60 (~$0.65-0.68) per kg, 20s recycled PC yarn (Grey) at ₹100-102 (~$1.14-1.16) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (~$1.48-1.54) per kg. Cotton comber prices were noted at ₹100-102 (~$1.14-1.16) per kg and recycled polyester fibre (PET bottle fibre) at ₹75-79 (~$0.86-0.90) per kg today.

In north India, cotton prices remained unchanged amid sluggish trade volumes. Traders noted limited cotton stocks with private ginners and stockists. The US tariff hike added to market apprehension. Spinning mills are refraining from fresh cotton purchases, anticipating weak demand in the near term.

Cotton arrivals in north India have reduced to negligible levels, with only previously stocked cotton being traded. Cotton prices in Punjab ranged from ₹5,960-5,970 (~$68.02–68.13) per maund of 37.2 kg; in Haryana, ₹5,730–5,850 (~$65.39–66.76); in upper Rajasthan, ₹6,000–6,010 (~$68.47–68.59). In lower Rajasthan, prices stood at ₹55,300–57,300 (~$631.09–653.92) 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)