Demand for north Indian cotton yarn weak despite uptick in south India

The Ludhiana market saw a downward trend in cotton yarn prices, with prices falling by ₹2 per kg. A local trader told Fibre2Fashion, "The weaving industry remains quiet. Fabric manufacturers are purchasing cotton yarn solely to meet immediate needs. The actual demand and supply situation will only be assessed after production stops at south Indian spinning mills." 

The price of 30 count cotton combed yarn was ₹253-263 per kg (GST inclusive), and 20 and 25 count combed yarn were traded at ₹242-247 per kg and ₹247-252 per kg respectively in Ludhiana. Meanwhile, 30 count carded yarn was recorded at ₹232-242 per kg, as per Fibre2Fashion's market insight tool TexPro. 

The Delhi market, however, reported a steady trend in cotton yarn prices, with sluggish buying from the weaving industry causing bearish sentiments. A Delhi trader told F2F, "The market hasn't responded to upcoming festival-related trade activities. The festival season may be delayed by about a month, contributing to the bearish trend. However, festival demand is expected to emerge." 

As per TexPro, the 30 count combed yarn traded at ₹260-262 per kg (GST extra), 40 count combed at ₹290-292 per kg, 30 count carded at ₹232-235 per kg, and 40 count carded at ₹262-265 per kg in Delhi. 

Prices for cotton comber and recycled polyester fibre increased slightly due to a slow supply. Comber prices rose by ₹2 per kg, as spinning mills produced limited amounts of this by-product of cotton combed yarn. The price of recycled polyester fibre also increased by ₹1 per kg. These raw materials are crucial to Panipat's home furnishing industry. However, the recycled yarn market didn't experience any significant changes, with prices remaining at their previous levels. 

In Panipat, 10s recycled PC yarn (grey) was traded at ₹77-82 per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (black) ₹50-54 per kg, 20s recycled PC yarn (grey) at ₹92-97 per kg and 30s recycled PC yarn (grey) at ₹135-145 per kg. Comber prices was hovering at ₹180-120 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹71-73 per kg. 

Meanwhile, north Indian cotton prices remained steady due to limited demand. Traders mentioned that ginners are selling cotton from their stocks, with Kapas arrivals dwindling. Market participants anticipate steady to improved sentiments in the coming weeks. MNCs are also expected to procure new season’s cotton. A recent agreement for purchasing September 2023 Haryana delivery cotton indicates this trend. In north India, cotton arrival was estimated at 700 bales of 170 kg.  

Cotton was traded at ₹5,850-5,950 per maund of 37.2 kg in Punjab, ₹5,625-5,725 per maund in Haryana, and ₹5,925-6,025 per maund in upper Rajasthan, and at ₹54,500-56,000 per candy of 356 kg in lower Rajasthan. 

Fibre2Fashion News Desk (KUL)