Cotton yarn prices hold steady amid slow demand in north India

14 Oct '24

4 min read

Cotton yarn prices hold steady amid slow demand in north India

Pic: Adobe Stock

Insights

North India's cotton yarn markets are experiencing sluggish demand, with summer demand yet to materialise.
Despite higher cotton arrivals and slow export demand, prices remain stable due to market support from the apparel sector and higher minimum support prices.
Recycled yarn markets in Panipat also stayed steady, with demand from the apparel industry helping offset slower home textile demand.

Cotton yarn markets in north India witnessed sluggish demand as the anticipated summer demand has yet to materialise. The increasing arrival of cotton and slow export demand further dampened market sentiment. However, market experts suggest that despite these negative factors, cotton yarn prices are unlikely to fall further. Prices in the Delhi and Ludhiana markets remained stable. Similarly, Panipat's recycled yarn market remained steady, despite changing dynamics. While demand for recycled yarn is slow compared to the large production volumes, the shift towards the apparel sector is providing crucial support.

In Ludhiana, cotton yarn prices were stable, but demand remained weak. A trader from Ludhiana told Fibre2Fashion, "The market has yet to see the summer demand, which will provide much-needed support to cotton yarn prices. There is little likelihood of a demand revival before the Diwali festival. The market is currently more focused on payment collection and the upcoming festival, rather than on sales."

In Ludhiana, 30 count cotton combed yarn was sold at ₹262-272 (approximately $3.12-3.24) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹252-262 (approximately $3.00-3.12) per kg and ₹257-267 (approximately $3.07-3.19) per kg, respectively; and carded yarn of 30 count was noted at ₹242-247 (approximately $2.89-2.95) per kg today, according to trade sources.

Cotton yarn prices in the Delhi market also remained steady. The current level of buying was encouraging for traders, and despite slow demand and higher cotton arrivals, yarn prices are not expected to decline significantly as cotton fibre consumption tends to increase during the summer season. Additionally, higher minimum support prices (MSP) will provide further support to the cotton textile value chain.

In this market, 30 count combed knitting yarn was traded at ₹267-270 (approximately $3.18-3.21) per kg (GST extra), 40 count combed at ₹289-297 (approximately $3.44-3.53) per kg, 30 count carded at ₹244-246 (approximately $2.91-2.94) per kg, and 40 count carded at ₹269-272 (approximately $3.21-3.25) per kg today.

The recycled yarn market in Panipat also maintained its previous price levels. This hub of India’s home textile industry is expected to see higher demand for blankets in the coming months, along with increased festival demand for home furnishings and other products. However, higher demand from the downstream industry was insufficient to fully absorb the large production capacity of recycled yarn. The shift of recycled yarn towards the apparel sector helped compensate for the lower demand from the home textile segment.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.93-0.98) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.63-0.67) per kg, 20s recycled PC yarn (Grey) at ₹96-102 (approximately 1.14-1.21) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.55-1.61) per kg. Cotton comber prices were noted at ₹100-107 (approximately $1.19-1.27) per kg and recycled polyester fibre (PET bottle fibre) at ₹77-81 (approximately $0.92-0.96) per kg today.

In north India, new cotton prices increased by ₹56-60 per maund (37.2 kg) in the last few days. Higher cotton arrivals and a declining trend in ICE cotton could not keep prices at their previous levels. Trade sources reported that recent rains in some cotton-growing areas of central and southern India supported cotton prices. Better quality and lower moisture content also added value to cotton. Cotton arrivals rose to 7,800 bales (170 kg each) in north India, comprising 800 bales in Punjab, 4,000 bales in Haryana, 1,200 bales in upper Rajasthan, and 1,800 bales in lower Rajasthan.

Cotton prices in Punjab ranged from ₹5,820 to ₹5,830 (approximately $69.24-69.36) per maund of 37.2 kg, while in Haryana prices ranged from ₹5,820 to ₹5,825 (approximately $69.24-69.30). In upper Rajasthan, cotton was priced between ₹5,820 and ₹5,830 (approximately $69.24-69.36) per maund, and in lower Rajasthan, it was priced at ₹55,200 to ₹56,000 (approximately $656.70-666.21) per candy of 356 kg. Seed cotton was priced between ₹7,200 and ₹7,600 (approximately $83.37-88.14) per quintal of 100 kg.