Mixed trend in north India's cotton yarn trade, prices up in Ludhiana

The Panipat market is facing a dual challenge of slower demand from end-consumers and lower supply of raw materials, resulting in squeezed margins for the home furnishing segment's value chain. However, recycled yarn prices remain unchanged. 

In Ludhiana, mills were not eager to sell their stock, causing cotton yarn prices to rise. “Spinners are limiting cotton yarn supplies in anticipation of higher prices in the coming weeks. Consumer industry is buying more cotton yarn to build up stock as cotton arrival season is ending,” a trader from Ludhiana market told Fibre2Fashion. Trade sources said that buyers were purchasing cotton yarn for extended periods to gradually build up their stock. 

According to Fibre2Fashion's market insight tool TexPro, 30 count cotton combed yarn was sold at ₹278-288 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹268-278 per kg and ₹272-282 per kg respectively; and carded yarn of 30 count was noted at ₹257-267 per kg. 

Delhi's cotton yarn prices remained steady due to lower demand from the downstream industry. “Buyers were purchasing cotton in smaller quantities and demand remained weak, which did not support yarn prices. Cotton yarn prices remained at previous levels,” a trader from Delhi market told F2F. In Delhi, 30 count combed yarn was traded at ₹280-285 per kg (GST extra), 40 count combed at ₹305-310 per kg, 30 count carded at ₹255-260 per kg and 40 count carded at ₹285-290 per kg. 

The recycled yarn market in Panipat faced a lower supply of raw materials, with the region's prominent home furnishing textile hub experiencing both reduced availability of raw materials and poor demand from domestic and international markets. However, yarn prices did not see significant movement, and both comber and recycled polyester fibre were sold at previous levels. 

In Panipat, 10s recycled PC yarn (grey) was traded at ₹88-92 per kg (GST extra); 10s recycled PC yarn (black) was traded at ₹60-65 per kg; 20s recycled PC yarn (grey) at ₹95-100 per kg and 30s recycled PC yarn (grey) at ₹150-155 per kg. Comber prices were noted at ₹148-150 per kg. Recycled polyester fibre (PET bottle fibre) was noted at ₹78-89 per kg. Cotton comber gained ₹4 per kg, while recycled polyester fibre increased by ₹2 per kg, as per TexPro. Lower supply of cotton comber indicate that spinners have reduced the production of cotton combed yarn. 

North India's cotton prices demonstrated a bearish tone, with the natural fibre decreasing by ₹20-30 per maund of 37.2 kg. According to the traders, weaving and garment industry demand was not encouraging, so spinners remained hesitant in cotton buying. Cotton prices were reported at ₹6,240-6,340 per maund of 37.2 kg in Punjab and Haryana and ₹6,450-6,550 per maund in upper Rajasthan, and ₹60,500-62,500 per candy of 356 kg in lower Rajasthan. The arrival was noted at 9,000 bales of 170 kg in north Indian markets. 

Fibre2Fashion News Desk (KUL)