Weak demand, labour crunch hit north Indian cotton yarn; prices stable

In Delhi, trade remained muted amid slow buying activity, partly due to the Labour Day holiday. However, cotton yarn prices held steady. Manufacturing activities across the downstream industry were affected. A trader from the Delhi market told Fibre2Fashion, “The market is facing headwinds both domestically and internationally. Garment export orders are not very encouraging.”

In Delhi, 30 count combed knitting yarn was traded at ₹260-261 (approximately $3.06-3.07) per kg (GST extra), 40 count combed at ₹285-286 (approximately $3.35-3.37) per kg, 30 count carded at ₹234-236 (approximately $2.75-2.78) per kg, and 40 count carded at ₹259-261 (approximately $3.05-3.07) per kg today.

The Ludhiana market also saw stability in cotton yarn prices. Mills are not witnessing encouraging demand from either the domestic or export markets. Market sources said that spinning mills are attempting to pass on increased production costs following the rise in cotton prices. However, they are unable to raise yarn prices, which is putting pressure on their margins. Market dynamics are unlikely to improve in the near term.

In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 (approximately $3.05-3.17) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 (approximately $2.93-3.05) per kg and ₹253-263 (approximately $2.99-3.11) per kg, respectively; and carded yarn of 30 count was noted at ₹238-243 (approximately $2.81-2.87) per kg today, according to trade sources.

India’s home textile hub Panipat is grappling with a widespread labour shortage across the textile value chain. Recycled yarn demand remained subdued due to weak downstream manufacturing activity. Trade sources said that demand for finished products was also weak, except for a few items in seasonal demand. The labour shortage has further weakened demand for intermediary products in the home furnishing value chain. Raw materials such as cotton comber and recycled polyester fibre were not traded steadily.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (approximately $0.89-0.92) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹52-55 (approximately $0.61-0.65) per kg, 20s recycled PC yarn (Grey) at ₹95-99 (approximately $1.12-1.17) per kg and 30s recycled PC yarn (Grey) at ₹128-134 (approximately $1.51-1.58) per kg. Cotton comber prices were noted at ₹108-110 (approximately $1.28-1.30) per kg and recycled polyester fibre (PET bottle fibre) at ₹77-79 (approximately $0.91-0.93) per kg today.

In north India, cotton prices declined further due to weak demand and falling ICE cotton rates. Prices dropped by ₹10–20 per maund (37.2 kg). Trade sources noted that the downward trend in ICE cotton has dampened local market sentiment. Spinning mills are sourcing cotton from the open market at comfortable price levels, with no urgency to buy since the Cotton Corporation of India (CCI) remains a key supplier this season.

Cotton arrivals in north India stood at 1,350 bales (170 kg each), including 50 bales in Punjab, 600 in Haryana, 500 in upper Rajasthan, and 200 in lower Rajasthan. In Punjab, cotton was priced at ₹5,740–5,750 (approximately $67.84–67.96) per maund; in Haryana, ₹5,640–5,680 (approximately $66.66–67.13); in upper Rajasthan, ₹5,760–5,780 (approximately $68.08–68.31); and in lower Rajasthan, ₹54,400–55,700 (approximately $642.94–658.30) per candy (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)