Yarn prices continue to slip in north India as cotton declines

In Ludhiana, cotton yarn prices slipped by ₹10-15 per kg as millers and stockists came into pressure after fall in cotton prices. However, traders said that demand is yet to improve. A Ludhiana based trader told Fibre2Fashion, “Cotton yarn demand was still weak as buyers were waiting for bottom line in the prices. If the demand improved from downstream industry, buyers would have to come ahead in the market. They do not want to take risk at this point of time.” Traders said that cotton yarn demand may improve in next month, but some people are still sceptical. In Ludhiana, 30 count cotton combed yarn was sold at ₹400-405 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹390-395 per kg and ₹395-400 per kg respectively. Carded yarn of 30 count was quoted at ₹340-345 per kg.

Delhi market also saw fall in prices as mills and stockists were offering lower prices because cotton prices are feeling pressure globally. Cotton yarn prices fell by ₹5-15 per kg prompting buyers to have new deals. According to trade sources, weaving industry and downstream manufacturers were encouraged for fresh buying after easing in prices. Garment manufacturers have to begin production after securing orders from big brands for next summer season. Cotton yarn demand is improving continuously. In Delhi, 30 count combed yarn was traded at ₹385-395 per kg (GST extra), 40 count combed at ₹425-435 per kg, 30 count carded at ₹350-360 per kg and 40 count carded at ₹390-400 per kg.

The price of recycled yarn in Panipat market noted steady trend amid poor demand from weaving industry. According to a trader, mills and traders were trying to hold recycled yarn prices at higher level as they wanted to ensure their margins. Recycle fibred and yarn prices are likely to fall in line with fresh cotton and cotton yarn. In Panipat market, 10s recycled yarn (white) was traded at ₹95-100 per kg (excluding GST), 10s recycled yarn (coloured - high quality) at ₹140-145 per kg, 10s recycled yarn (coloured - low quality) at ₹95-105 per kg and 20s recycled high quality PC yarn (coloured) at ₹160-170 per kg. 10s optical yarn was traded at ₹125-130 per kg in the market. Comber was sold at ₹125 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹98 per kg.

Meanwhile, cotton prices dropped by ₹800-1,000 per maund of 37.2 kg compared to last week in north India. According to traders, cotton was sold at ₹8,300-8,700 in Bathinda, ₹8,000-8,300 in Hissar and ₹8,600-8,800 per maund in Sriganganagar market. The consecutive decline in domestic and global cotton futures led to losses in spot prices in north India.

ALCHEMPro News Desk (KUL)