North Indian cotton yarn's demand rises; prices further up in Ludhiana

30 May '24

4 min read

North Indian cotton yarn's demand rises; prices further up in Ludhiana

Pic: Adobe Stock

Insights

In north India, cotton yarn prices rose in Ludhiana, while prices remained steady in Delhi.
This trend is driven by recent cotton price increases in ICE and domestic markets, along with higher demand from Bangladesh following substantial garment export orders.
Spinning mills are raising domestic yarn prices due to export orders from Bangladesh.

North India cotton yarn market witnessed positive sentiments, with Ludhiana seeing an increase of ₹3 per kg, while prices remained steady in Delhi. The recent rise in cotton prices in ICE and domestic markets drove this upward trend, as per trade sources. Increased demand from Bangladesh, following substantial garment export orders, also contributed. Strong export orders from Bangladesh and other countries prompted spinning mills to raise domestic yarn prices.

The Delhi market noted stability in cotton yarn prices, after a price rise last week. A trader from the Delhi market told Fibre2Fashion, "Mills are increasing their selling prices after the rise in ICE cotton. But domestic demand is not so strong. Buyers were cautious about new purchases after the rise in prices. However, overall sentiments were positive in the cotton yarn market.”

In this market, 30 count combed knitting yarn was traded at ₹265-267 (approximately $3.19-3.21) per kg (GST extra), 40 count combed at ₹285-292 (approximately $3.43-3.51) per kg, 30 count carded at ₹240-242 (approximately $2.89-2.91) per kg, and 40 count carded at ₹265-268 (approximately $3.19-3.23) per kg today.

Meanwhile, the Ludhiana market noted a further rise of ₹3 per kg. Spinning mills were increasing yarn prices after receiving strong export orders. According to trade sources, mills were aggressively raising prices due to export orders from Bangladesh. It is said that the country has secured substantial orders for garments, increasing its requirement for cotton yarn. India is one of the major cotton yarn suppliers for Bangladesh.

In Ludhiana, 30 count cotton combed yarn was sold at ₹267-277 (approximately $3.21-3.33) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹257-267 (approximately $3.09-3.21) per kg and ₹262-272 (approximately $3.15-3.27) per kg, respectively; and carded yarn of 30 count was noted at ₹247-252 (approximately $2.97-3.03) per kg today, according to trade sources.

India’s home textile hub Panipat saw an increase in fibre prices. Cotton comber prices gained ₹2-3 per kg after the rise in the natural fibre. Similarly, recycled polyester staple fibre also increased by ₹2 per kg to ₹73-77 per kg. However, recycled yarn prices did not see a significant rise in recent days. The share of 100 per cent cotton yarn (for home textiles) production is very little in total yarn production in Panipat and nearby areas. A trader said that such yarn might see an upward trend. 20 count yarn of 100 per cent cotton comber was traded at around ₹150 per kg. Other types of recycled yarn were traded at previous levels.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.94-0.98) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.64-0.67) per kg, 20s recycled PC yarn (Grey) at ₹90-95 (approximately 1.08-1.14) per kg and 30s recycled PC yarn (Grey) at ₹128-132 (approximately $1.54-1.58) per kg. Cotton comber prices were noted at ₹111-115 (approximately $1.33-1.38) per kg. Recycled polyester fibre (PET bottle fibre) noted at ₹73-77 (approximately $0.88-0.92) per kg today.

In north India, cotton prices weakened today after easing in ICE cotton. The prices slumped by ₹20-25 per maund of 37.2 kg in various markets of north India. Traders said there was regular demand from spinning mills, but prices eased due to softness in ICE cotton. Recent gains in yarn prices prompted mills to secure cotton from the market. According to traders, ginners are selling cotton from their stock as the new arrival of seed cotton reduced further.

Today’s arrival reduced to 1,200 bales of 170 kg from 1,400 bales on Wednesday. State-wise arrivals were noted as Haryana 1,200 bales, upper Rajasthan 100, and lower Rajasthan 100 bales. Cotton arrival was almost nil in Punjab. Cotton prices in Punjab ranged from ₹5,780 to ₹5,800 (approximately $69.39-69.63) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,700 to ₹5,800 (approximately $68.43-69.63). In upper Rajasthan, cotton was priced between ₹5,500 and ₹5,800 (approximately $66.03-69.63) per maund. Bikaner line cotton sold for ₹5,800 to ₹5,900 (approximately $69.63-70.83) per maund. In lower Rajasthan, cotton was priced at ₹54,500 to ₹57,500 (approximately $654.26-690.27) per candy of 356 kg.