Cotton yarn prices ease in north India as demand remains elusive

In the Delhi market, a decline of ₹2-3 per kg in cotton yarn prices was witnessed. The market has noted sluggish demand from the downstream industry. A trader from the Delhi market told Fibre2Fashion, “The market was hopeful for better demand by Diwali. But no indications were visible for improved sentiments in the market. The buying of cotton yarn further dried up because of the downtrend in the prices of the natural fibre.” 

In Delhi, 30 count combed yarn was traded at ₹257-260 per kg (GST extra), 40 count combed at ₹285-290 per kg, 30 count carded at ₹235-237 per kg, and 40 count carded at ₹260-265 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Ludhiana market also witnessed a downward trend in cotton yarn prices amid slow buying from the downstream industry. Cotton yarn prices slipped by ₹2-3 per kg in the market. The market was facing a payment crisis because of piling up unsold stocks in the entire value chain. A trader from the Ludhiana market told F2F, “The textile value chain was facing financial constraints because of mounting unsold stocks. Many millers had to cut production because of weak demand. They had to infuse extra capital to run their business operations. Spinning mills were facing pressure to sell their stock at lower prices.” 

In Ludhiana, 30 count cotton combed yarn was sold at ₹253-263 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹243-253 per kg and ₹248-258 per kg, respectively; and carded yarn of 30 count was noted at ₹233-238 per kg, as per TexPro. 

Panipat’s recycled yarn market also noted poor demand from the manufacturers of downstream products. Although recycled yarn was sold at the previous level, raw materials like cotton comber and recycled polyester fibre eased by ₹2-3 per kg. Traders said that buyers were silent in the market. They were looking to purchase in small quantities so they could continue minimum production. They did not want to take the risk of further price falls. 

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹74-78 per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) ₹49-52 per kg, 20s recycled PC yarn (Grey) at ₹90-95 per kg, and 30s recycled PC yarn (Grey) at ₹133-142 per kg. However, cotton comber prices were noted at ₹115-116 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹67-70 per kg. 

North India cotton prices slipped further by ₹25-30 per maund of 37.2 kg due to lower ICE cotton. According to traders, spinners reduced their buying in anticipation of a price fall after an ease in ICE cotton. The global cotton prices have witnessed a steep fall in the last couple of days. The total arrival in north India remained flat at 29,000 bales of 170 kg. State-wise arrival was noted as Haryana 9,000 bales, upper Rajasthan 9,000 bales, and lower Rajasthan 11,000 bales. There was no significant arrival in Punjab due to a strike. 

Cotton prices slipped to ₹25-30 per maund. It was priced in Punjab at ₹5,525-5,625, in Haryana at ₹5,500-5,600, and in upper Rajasthan at ₹5,400-5,620 per maund of 37.2 kg. The natural fibre was priced at ₹53,700-55,500 per candy of 356 kg in lower Rajasthan. Cotton was traded at ₹100-125 per maund higher in the Bikaner line in comparison to the Shri Ganganagar market due to better quality. 

Fibre2Fashion News Desk (KUL)