Garment import from China worries north Indian yarn market; rates down

Cotton yarn prices fell in Ludhiana as the market is concerned about the import of cheaper cotton garments from China that may impact the entire textile value chain of India. It is important to note that cotton and cotton yarn prices recorded a steep fall in China after the US imposed a ban on cotton originating in the Xinjiang region. “Volume of imports is yet to be ascertained. But the initial report regarding Chinese imports is worrisome for the domestic market and the industry at large. Indian government must act quickly to protect the domestic industry, trade, and farmers,” a trader from Ludhiana market told Fibre2Fashion.

In the Ludhiana market, cotton yarn eased by ₹5 per kg. 30 count cotton combed yarn was sold at ₹310-320 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹295-305 per kg and ₹300-310 per kg respectively. Carded yarn of 30 count was quoted at ₹265-275 per kg. 

In Delhi, cotton yarn prices remained stable amid low demand, while cotton prices improved due to a lower production estimate. According to a trader from Delhi, mills are trying to increase the prices of cotton yarn, but the buyers are not willing to pay more. In the Delhi market, 30 count combed yarn was traded at ₹310-315 per kg (GST extra), 40 count combed at ₹345-350 per kg, 30 count carded at ₹280-285 per kg and 40 count carded at ₹315-320 per kg, as per TexPro. 

The recycled yarn prices remained stable in the Panipat market. It is mainly used in home furnishing and to make coarse fabrics. Demand for recycled yarn is yet to pick up as there were no activities on the exports front. Exporters are struggling to get new orders due to the economic slowdown in foreign markets. The ban on coal-based dyeing units in Panipat has been relaxed till the end of December this year, thus recycled yarn supply remained stable in the market. 

In Panipat, 10s recycled yarn (white) was traded at ₹86-92 per kg (excluding GST) after a decline of ₹1-2 per kg. But 10s recycled yarn (coloured - high quality) steadied at ₹100-105 per kg, 10s recycled yarn (coloured - low quality) was sold at ₹80-85 per kg and 20s recycled high quality PC yarn (coloured) at ₹105-110 per kg. 30 count recycled yarn was sold at ₹155-160 per kg and 10s optical yarn was traded at ₹100-110 per kg. Comber prices were ruling at ₹120-125 per kg and the same decreased to ₹115-120 per kg in south India. Recycled polyester fibre (PET bottle fibre) was at ₹88-90 per kg. 

North India’s cotton prices increased due to low crop estimate and cloudy weather. North India’s cotton production estimate for the new marketing season 2022-23 (October-September) has been lowered by around 10 lakh bales of 170 kg to 51 lakh bales by Bathinda based Indian Cotton Association Ltd (ICAL). The region comprises Punjab, Haryana, upper Rajasthan and lower Rajasthan. Daily arrival in north India decreased to 10,000-11,000 bales. Cotton was traded at ₹7,200-7,250 per maund of 37.2 kg for ready trade. The prices gained ₹75 per maund since last Friday. 

Fibre2Fashion News Desk (KUL)