North India's cotton yarn prices ease further, debate on support level

Ludhiana market witnessed a drop in cotton yarn prices as spinning mills have decreased yarn prices due to declining cotton prices. However, cotton prices steadied in the last week as farmers were discouraged from selling their crop at lower prices. Traders are currently evaluating the bottom line of yarn prices in the present market trend and the future scenario of demand and supply. “30 combed yarn should find support at ₹305-310 per kg (GST extra). However, many factors will determine the bottom line of the product. The prices should come down further by ₹10-15 per kg,” a trader from Ludhiana market told Fibre2Fashion.

In a couple of days, cotton yarn prices eased by ₹10-15 per kg in the Ludhiana market. 30 count cotton combed yarn was sold at ₹315-325 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹305-315 per kg and ₹310-320 per kg respectively. Carded yarn of 30 count was quoted at ₹270-280 per kg. 

Cotton yarn prices slipped by ₹5 per kg in the last couple of days in the Delhi market too. Traders expect the demand to improve soon as yarn prices have already fallen drastically. According to a trader, “Falling prices are attracting buyers, however, they are cautious due to heavy losses. They will come back to the market, but their confidence is yet to build up.” 

In Delhi, 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 Panipat market of recycled yarn, which is mainly used in home furnishing, is yet to react on the disruptions in the production of dyeing units in the nearby areas. Yarn prices remained weak while demand was average. According to the traders, only 10-15 per cent dyeing units could convert boilers from coal to CNG. Coal-based units were shut down due to the new pollution norms imposed from the beginning of this month. The market will react in the weeks to come. However, demand in recycled yarn remained weak as local and export buying has not picked up yet. 

Recycled polyester cotton (PC) yarn of major varieties were traded at previous rates. 10s recycled yarn (white) was traded at ₹88-93 per kg (excluding GST), 10s recycled yarn (coloured - high quality) at ₹100-105 per kg, 10s recycled yarn (coloured - low quality) 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. 10s optical yarn was traded at ₹100-110 per kg in the market. Comber prices were ruling at ₹120-125 per kg. Comber prices decreased to ₹115-120 per kg in south India. Recycled polyester fibre (PET bottle fibre) noted at ₹88-90 per kg. 

Cotton prices in north India remained steady amid limited arrival. According to the traders, cotton arrival did not increase as farmers are not interested to sell their crop at current prices. Ginners are facing low supply, so they are running ginning units on a hand-to-mouth basis. Daily arrival in north India comprising Punjab, Haryana, upper Rajasthan and lower Rajasthan was at 12,000-13,000 bales of 170 kg. Cotton was traded at ₹7,125-7,250 per maund of 37.2 kg for ready trade. 

Fibre2Fashion News Desk (KUL)