Cotton yarn prices dip further; Panipat optimistic as festival begins

The Ludhiana market did not see any improvement in buying. Buyers remain cautious about making fresh deals as they are not confident about the demand from the downstream industry. “Cotton yarn market was still reeling under the pressure of weak demand. Poor buying from downstream industry is the main cause for concern. Low prices of cotton are also dampening the market sentiments for yarn trade,” a local trader told Fibre2Fashion. 

In Ludhiana, cotton yarn prices dropped ₹10-20 per kg during the last week. 30 count cotton combed yarn was sold at ₹342-352 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹332-342 per kg and ₹337-347 per kg respectively. Carded yarn of 30 count was quoted at ₹295-300 per kg. 

Cotton yarn prices further slipped by ₹10 per kg in Delhi in the last one week. “Demand was average, and buyers were purchasing yarn only to fulfil their immediate needs. Weaving industry is still unsure about the increase in buying quantity from the garment industry,” a trader from Delhi told Fibre2Fashion. 

In the Delhi market, 30 count combed yarn was traded at ₹360-365 per kg (GST extra), 40 count combed at ₹400-405 per kg, 30 count carded at ₹315-320 per kg and 40 count carded at ₹355-360 per kg, as per TexPro. 

Panipat’s market is expecting an increased demand this week as the festival of Navratri, that is considered auspicious for new purchases, has begun today. According to traders, recycled yarn remained bearish, but the next few days will be crucial for the market. Domestic home furnishing segment usually picks up during the festival season, specifically before Diwali. However, the market did not notice any positivity on the first day of Navratri. 

Few of the varieties of recycled yarn witnessed a decline of ₹5-10 per kg. In the Panipat market, 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 ₹110-115 per kg. 30 count recycled yarn was sold at ₹160-165 per kg. 10s optical yarn was traded at ₹100-110 per kg in the market. Comber prices were ruling at ₹128-130. Recycled polyester fibre (PET bottle fibre) remained steady at ₹88-90 per kg. 

Cotton prices in north India remained bearish due to reduced buying by mills. Demand was so weak that even recent rains were unable to support the cotton prices. There was a steep fall in prices for October delivery cotton deals. Daily arrival in north India comprising Punjab, Haryana, upper Rajasthan and lower Rajasthan was estimated at 6,000 bales of 170 kg. Cotton was traded at ₹7,700-7,750 per maund of 37.2 kg for spot and September delivery deals. Forward cotton was traded at ₹7,100-7,150 per maund for October delivery. 

Fibre2Fashion News Desk (KUL)