Cotton yarn stable in north India as industry eyes post-Eid revival

08 Apr '24

4 min read

Cotton yarn stable in north India as industry eyes post-Eid revival

Pic: Adobe Stock

Insights

Cotton yarn prices remained stable in Delhi and Ludhiana amid average demand from fabric industry.
Eid led to a market slowdown as workers are on leave.
Despite expectations of post-festival demand improvement, the yarn market has not seen positive momentum.
Panipat's recycled yarn market remained steady.
North India cotton prices saw a slight uptick.

Cotton yarn prices continued to remain stable in Delhi and Ludhiana due to average demand from the fabric industry. The approaching Eid festival contributed to a slowdown in the yarn market, as many workers are on leave to partake in the celebrations. Trade experts mentioned that demand might improve after the festival on April 11, as production activities will accelerate thereafter. Despite better demand in the fabric segment, the yarn market did not experience any positive momentum.

In the Delhi market, there was no significant movement in cotton yarn prices. A trader from the Delhi market told Fibre2Fashion, "Cotton yarn demand may remain weak this season as the current season is now over for the fabric industry. There might be demand at the garment and retail level. The higher demand for garments during Eid was not reflected in the yarn market. However, it led to slow buying of cotton yarn as workers went on leave for the festival."

In Delhi, 30 count combed yarn was traded at ₹278-281 (approximately $3.34-3.37) per kg (GST extra), 40 count combed at ₹303-308 (approximately $3.64-3.70) per kg, 30 count carded at ₹253-258 (approximately $3.04-3.10) per kg, and 40 count carded at ₹280-283 (approximately $3.36-3.40) per kg today, as per Fibre2Fashion's market insight tool TexPro.

The Ludhiana market also saw average demand for cotton yarn amid stability in demand from the fabric industry. Gulshan Jain, a trader from the Ludhiana market, told F2F, "Cotton yarn demand may improve after Eid when workers in the fabric industry return, and the consumption of cotton yarn will increase. There was no impact on cotton yarn buying from reports of good demand for garments." Some trade sources indicated that in addition to better garment demand during Eid, there were expectations for good garment demand in the festival season in the second half of this year. However, the yarn market has yet to see a positive turnaround from the downstream industry.

In Ludhiana, 30 count cotton combed yarn was sold at ₹274-284 (approximately $3.29-3.41) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹263-274 (approximately $3.16-3.29) per kg and ₹270-280 (approximately $3.24-3.36) per kg, respectively; and carded yarn of 30 count was noted at ₹254-261 (approximately $3.05-3.13) per kg today, as per TexPro.

Panipat's recycled yarn market also witnessed steadiness in prices amid slow demand. Cotton comber and recycled polyester fibre prices remained stable in the market. According to trade sources, not only in India but also globally, the home textile sector has yet to recover from the slow demand following the historical demand during the COVID period. Moreover, there was no significant demand for cotton bedsheets from the domestic market this summer season.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹76-80 (approximately $0.91-0.96) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹51-54 (approximately $0.61-0.65) per kg, 20s recycled PC yarn (Grey) at ₹88-93 (approximately $1.06-1.12) per kg, and 30s recycled PC yarn (Grey) at ₹125-130 (approximately $1.50-1.56) per kg. Cotton comber prices were noted at ₹120-122 (approximately $1.44-1.46) per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹74-76 (approximately $0.89-0.91) per kg today, as per TexPro.

North India cotton prices noted a slight upward trend after easing in the last days of the previous week. The prices improved by ₹20-25 per maund of 37.2 kg today. Traders stated that stronger cotton futures in the domestic market supported sentiments in the spot market as well. However, demand from spinning mills and other buyers was not as supportive.

Today's arrivals were recorded at 4,500 bales of 170 kg each. The state-wise breakdown shows Punjab receiving 400 bales, Haryana 2,000 bales, upper Rajasthan 1,500, and lower Rajasthan 600 bales. In Punjab, cotton prices ranged from ₹5,950 to ₹6,050 (approximately $71.41-72.61) per maund of 37.2 kg, while in Haryana, the prices varied from ₹5,900 to ₹6,000 (approximately $70.78-72.01) per maund. Cotton prices in upper Rajasthan were between ₹5,825 and ₹6,025 (approximately $69.91-72.31) per maund. The Bikaner line cotton was priced from ₹6,000 to ₹6,100 (approximately $72.01-73.21) per maund. In lower Rajasthan, cotton was quoted at ₹57,200 to ₹59,200 (approximately $686.48-710.48) per candy of 356 kg.