North India cotton yarn prices bearish but traders optimistic

The Ludhiana market experienced a decline in cotton yarn prices due to poor demand, with prices falling by ₹1-2 per kg. Mills and stockists faced pressure to sell their inventory at lower prices. Despite this, traders remained optimistic that cotton yarn prices would find support around Diwali. A trader from the Ludhiana market told Fibre2Fashion, "Buyers often wait for the bottom line before making purchases. They are slow to buy fresh stock, but they'll need to replenish their inventories after the festival sales leading up to Diwali. As a result, we expect fresh buying activity, which should support market sentiment and potentially improve cotton yarn prices." 

In Ludhiana, 30 count cotton combed yarn was sold at ₹261-271 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹251-261 per kg and ₹256-266 per kg respectively; and carded yarn of 30 count was noted at 241-246 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Delhi market also saw weak demand from the downstream industry, although prices remained stable. Domestic demand from the consumer industry continued to be bearish. A trader from the Delhi market told F2F, "There was no sign of improvement in demand. Traders and millers are trying to hold prices at the current level amid uncertainty regarding any uptick in demand." 

In Delhi, 30 count combed yarn was traded at ₹265-270 per kg (GST extra), 40 count combed at ₹295-300 per kg, 30 count carded at ₹235-240 per kg and 40 count carded at ₹265-270 per kg, as per TexPro. 

Panipat's recycled yarn prices also showed a downward trend due to weak demand for home furnishing products, losing ₹2-3 per kg. A trader indicated that millers were unable to reduce prices further due to higher production costs. Lowering prices would result in even greater losses. Additional production capacities are expected to exacerbate this situation for mills. Around 15-20 new production plants are anticipated to come online in the next six months, even as demand for home furnishings continues to decline. 

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹74-78 per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) ₹49-52 per kg, 20s recycled PC yarn (Grey) at ₹90-95 per kg and 30s recycled PC yarn (Grey) at ₹133-142 per kg. However, cotton comber prices were noted at ₹119-120 per kg. Recycled polyester fibre (PET bottle fibre) noted at ₹72-73 per kg. Both raw materials cotton comber and recycled polyester fibre eased ₹2-4 per kg because of slower demand. 

North India's cotton prices showed a slight improvement after a steep fall last week, rising by ₹25-50 per maund of 37.2 kg. The increase was attributed to reduced cotton arrivals due to rainfall in various parts of the region. Cotton arrivals dropped to 14,000 bales of 170 kg, down from 23,000 bales the previous week. State-wise, Punjab reported 1,000 bales, Haryana 5,000, upper Rajasthan 4,000, and lower Rajasthan 4,000 bales. Cotton was priced at ₹5,850-5,950 per maund in Punjab, ₹5,825-5,925 in Haryana, and ₹5,725-5,825 in upper Rajasthan. In lower Rajasthan, the natural fibre was priced between ₹56,500 and ₹58,000 per candy of 356 kg. 

Fibre2Fashion News Desk (KUL)