Cotton yarn demand may pick up, prices steady in north India

01 Apr '24

4 min read

Pic: Adobe Stock

Insights

The north Indian market anticipates improved demand for cotton yarn with the new fiscal easing payment rule concerns.
Stability is seen in Delhi, Ludhiana, and Panipat markets, despite limited off-season demand.
Delhi and Ludhiana note steady yarn prices and potential demand increases.
Panipat's recycled yarn market remains stable but quiet.

The north Indian market is expected to see an improvement in demand for cotton yarn in the coming weeks, as the beginning of the new fiscal 2024-25 has alleviated concerns within the textile value chain regarding the new payment rule. Although cotton yarn prices have remained stable in the Delhi and Ludhiana markets, demand was slightly better, according to trade sources. The Panipat market also reported stability in the price of recycled yarn used for home textiles. The market is likely to remain range-bound due to limited off-season demand, which is expected to continue for the next couple of weeks.

The Delhi market experienced steadiness in various counts and varieties of cotton yarn. A trader from the Delhi market informed Fibre2Fashion, "The market may witness higher demand in the coming weeks as buyers will be looking to make purchases in the new fiscal. The concerns regarding the new payment rule have eased with the start of the new fiscal." In this market, 30 count combed yarn was traded at ₹278-281 (approximately $3.33-3.37) per kg (GST extra), 40 count combed at ₹303-308 (approximately $3.63-3.69) per kg, 30 count carded at ₹253-258 (approximately $3.03-3.09) per kg, and 40 count carded at ₹280-283 (approximately $3.36-3.39) per kg today, as per Fibre2Fashion's market insight tool TexPro.

The Ludhiana market also observed stability in cotton yarn prices amid average demand. The market saw increased trade in the new fiscal. A trader from the Ludhiana market told F2F, "The pipeline is empty as buyers did not purchase cotton yarn in March due to a payment crunch. They need to replenish their stock, which may boost the demand for cotton yarn. However, prices did not see any movement on the first day of April." In Ludhiana, 30 count cotton combed yarn was sold at ₹274-284 (approximately $3.29-3.40) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹263-274 (approximately $3.15-3.29) per kg and ₹270-280 (approximately $3.24-3.36) per kg, respectively; and 30 count carded yarn was noted at ₹254-261 (approximately $3.05-3.13) per kg today.

The recycled yarn market in Panipat did not witness significant movement in buying, as it is currently the off-season. Prices for recycled yarn remained stable in this north Indian home textile manufacturing hub. Traders anticipate that the weak sentiment may persist for the next few weeks.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹76-80 (approximately $0.91-0.94) per kg (GST paid). Other varieties and counts included 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 ₹70-72 (approximately $0.84-0.86) per kg today, as per TexPro.

North India's cotton prices showed a positive tone, with an increase of ₹25-30 per maund of 37.2 kg today. There was higher demand from spinning mills and other buyer segments, noted amid decreasing arrivals due to the end of the season. A trader from the Bathinda market mentioned that the market is expected to see better demand due to the ease in concerns regarding the new payment rule in the new fiscal.

Today's arrivals were noted at 5,000 bales of 170 kg. State-wise arrivals included 500 bales from Punjab, 2,000 bales from Haryana, 1,500 from upper Rajasthan, and 1,000 from lower Rajasthan. In Punjab, cotton prices ranged from ₹6,025 to ₹6,075 (approximately $72.25-72.85) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,950 to ₹6,050 (approximately $71.35-72.55). In upper Rajasthan, cotton was priced between ₹5,860 and ₹6,100 (approximately $70.27-73.15) per maund. Bikaner line cotton sold for ₹6,100 to ₹6,150 (approximately $73.15-73.75) per maund. In lower Rajasthan, cotton was priced at ₹57,300 to ₹59,300 (approximately $687.16-711.14) per candy of 356 kg.