North India cotton yarn down ₹10/kg, buyers silent after new arrival

Ludhiana market noted a decline of ₹5-10 per kg in cotton yarn prices. Buyers further reduced buying after a fall in cotton prices. A local trader told Fibre2Fashion, “Weaving industry was cautious about fresh buying and the downstream industry is only buying to fulfil the immediate need.” 

In Ludhiana, 30 count cotton combed yarn was sold at ₹385-390 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹375-380 per kg and ₹380-385 per kg respectively. Carded yarn of 30 count was quoted at ₹335-340 per kg. 

The Delhi market also witnessed a fall in yarn prices amid poor demand. Traders said that buyers are waiting for stability in the entire value chain. Yarns and fabrics will see a drop in prices because of the reduction in the price of new cotton. Buyers will come back for bulk buying only when the prices are bottomed out. 

In the Delhi market, 30 count combed yarn was traded at ₹380-385 per kg (GST extra), 40 count combed at ₹420-425 per kg, 30 count carded at ₹340-345 per kg and 40 count carded at ₹375-380 per kg, as per TexPro. 

As for the Panipat market, it also recorded a decrease in recycled yarn prices. Recycled yarn came down by ₹3-5 per kg. Declining fresh cotton yarn is causing the slippage in the recycled yarn market too. Cotton comber came down by ₹5 per kg due to the falling prices of fibre and yarn. But PET bottle fibre prices were stable. According to traders, mills are shifting to polyester yarn because they find more stability in polyester. They are consuming PET bottle fibre (recycled polyester fibre) to control their production costs. A higher demand for cheaper raw material has resulted into tight supply. 

In the Panipat market, 10s recycled yarn (white) was traded at ₹88-93 per kg (excluding GST), 10s recycled yarn (coloured - high quality) at ₹105-110 per kg, 10s recycled yarn (coloured - low quality) at ₹80-85 per kg and 20s recycled high quality PC yarn (coloured) at ₹120-125 per kg. 30 count recycled yarn was sold at ₹160-165 per kg. 10s optical yarn was traded at ₹100-110 per kg in the market. Comber prices were ruling at ₹130-135 per kg. Recycled polyester fibre (PET bottle fibre) was at ₹88-91 per kg. 

The prices are coming down gradually in north India as the region has received 3,000 bales of 170 kg of new cotton. Most of the arrival was recorded in Haryana mandis, with Punjab getting a few lots of the new cotton. Rajasthan’s upper and lower regions are yet to see the new arrival. Ready trade deals are very limited, while forward deals are common in north India. New cotton was traded at ₹8,900-9,000 per maund of 37.2 kg for spot deals. Forward deals were sealed at ₹8,200-8,400 for September and ₹7,800-7,900 per maund for October delivery. 

Fibre2Fashion News Desk (KUL)