Cotton yarn prices ease in north India, steady in Panipat

22 Apr '24

4 min read

Cotton yarn prices ease in north India, steady in Panipat

Pic: Adobe Stock

Insights

Cotton yarn prices in north India have dropped by ₹3 per kg due to factors like a cash crunch during elections and geopolitical tensions.
Despite a recent rise in raw material costs, demand remains weak.
Additionally, the recycled yarn market in Panipat is stable, facing a worker shortage as many have left for election-related reasons or farming.

North India's cotton yarn prices decreased by ₹3 per kg due to several negative factors. A cash crunch during the election period and the nervousness caused by a tense geopolitical scenario have dampened demand from the downstream industry. Notably, Ludhiana and Delhi in north India have seen a declining trend in cotton yarn prices. Market experts anticipate that sentiments may remain weak in the coming week amid the current sluggish demand. However, the recycled yarn market in Panipat noted stability amid a supply shortage. Traders mentioned that yarn mills and downstream industries are experiencing a labour shortage, which has slowed production in the region. The market had noted gains in raw material prices during the previous week.

Cotton yarn was traded down by ₹3 per kg in the Ludhiana market due to weak demand. The garment and fabric industries are uncertain about demand in the upcoming months. A trader from the Ludhiana market told Fibre2Fashion, "Traders were reluctant to transact in cash because of strict police checks. This hampered the textile trade and slowed down yarn trade. The police, under the Election Commission, have tightened checks to stop cash transactions during the general elections.” Although the Iran-Israel conflict was expected to ease, overall geopolitical tensions remain a cause for concern regarding better retail demand in several countries.

In Ludhiana, 30 count cotton combed yarn was sold at ₹267-277 (approximately $3.20-3.32) per kg (inclusive of GST); 20 and 25 count combed yarn at ₹257-267 (approximately $3.08-3.20) per kg and ₹262-272 (approximately $3.14-3.26) per kg, respectively; and carded yarn of 30 count was noted at ₹247-253 (approximately $2.96-3.03) per kg today, according to trade sources.

The Delhi market also witnessed a downward trend in cotton yarn prices, decreasing by ₹3 per kg due to slow demand. According to trade sources, both local and export demand was slow. Buyers from the downstream industry were cautious about fresh buying, not wanting to build large stocks without clear indications of good demand in the coming months.

In this market, 30 count combed yarn was traded at ₹272-275 (approximately $3.26-3.30) per kg (GST extra), 40 count combed at ₹297-302 (approximately $3.56-3.62) per kg, 30 count carded at ₹247-252 (approximately $2.96-3.02) per kg, and 40 count carded at ₹275-278 (approximately $3.30-3.33) per kg today.

The recycled yarn market in Panipat has maintained stable prices. Traders report that yarn mills and the downstream industries are experiencing a worker shortage, as many employees have returned to their native places to vote in the upcoming general elections and to engage in farming activities. Despite these challenges, the market experienced a rise in recycled yarn prices the previous week.

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 ₹113-115 (approximately $1.35-1.38) per kg and recycled polyester fibre (PET bottle fibre) was noted at ₹74-77 (approximately $0.90-0.93) per kg today.

In north India, cotton prices have increased due to slow buying after a consistent price fall. Cotton yarn prices increased by ₹50-70 per maund of 37.2 kg. Traders said that the recent fall in cotton prices discouraged ginners and farmers from selling their stocks. Meanwhile, current prices are considered very attractive, which encouraged spinning mills. This caused an increase in cotton prices. Gains in domestic cotton futures and ICE cotton also supported spot prices in north India.

Today's cotton arrivals decreased to 2,700 bales of 170 kg in north India. State-wise arrivals were as follows: 300 bales in Punjab, 1,000 bales in Haryana, 800 bales in upper Rajasthan, and 600 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,800 to ₹5,850 (approximately $69.57-70.17) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,750 to ₹5,850 (approximately $68.97-70.17). In upper Rajasthan, cotton was priced between ₹5,675 and ₹5,875 (approximately $68.07-70.47) per maund. Bikaner line cotton sold for ₹5,850 to ₹5,950 (approximately $69.97-71.37) per maund. In lower Rajasthan, cotton was priced at ₹56,000 to ₹58,200 (approximately $671.70-698.09) per candy of 356 kg.