North India cotton yarn steady amid weak exports, Bangladesh crisis

India's home textile hub, Panipat, also experienced stability in recycled yarn prices, although weak export demand for home textile products posed challenges. Prices for cotton comber and recycled polyester fibre fell slightly in the market.

The Ludhiana market continued to see normal demand for cotton yarn, with prices showing no significant movement. However, mills were looking to raise their rates to offset the disparity in production costs. A trader from Ludhiana told Fibre2Fashion, “Domestic demand was normal, in line with the festival season. But the sudden drop in shipments to Bangladesh has created a significant gap that cannot be easily covered. The neighbouring country was importing not just fabric but also yarn. The shortfall in export demand cannot be fulfilled by the local market.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹262-272 (approximately $3.13-3.25) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹252-262 (approximately $3.01-3.13) 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.

The Delhi market experienced similar conditions, with cotton yarn prices remaining unchanged amid average demand. According to trade sources, in addition to weak export demand, the seasonal shift also contributed to the reduced demand. The fabric industry is planning for the production of cotton yarn aimed at the next summer season. Typically, cotton yarn demand increases for summer garment production. As the winter season comes to an end, fabric production for winter garments has slowed down.

In Delhi, 30 count combed knitting yarn was traded at ₹267-270 (approximately $3.19-3.22) per kg (GST extra), 40 count combed at ₹289-297 (approximately $3.45-3.54) 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.

In Panipat, cotton comber and recycled polyester fibre prices eased by ₹2-3 per kg due to various factors. The price of the cotton by-product decreased following the arrival of new cotton. Cotton comber availability is expected to improve when mills begin yarn production for the new season. Recycled yarn prices also fell due to a consistent drop in virgin polyester fibre prices from major domestic producers. A trader from the Panipat market mentioned that the entire recycled yarn market is under pressure due to slow export demand. Exporters are trying to divert their production to the domestic market, which is creating an oversupply in the recycled yarn market, particularly those based on cotton comber and recycled polyester-cotton. Polyester yarn, however, is seeing better demand due to its lower price.

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 $1.56-1.62) per kg. Cotton comber prices were noted at ₹100-107 (approximately $1.19-1.28) per kg and recycled polyester fibre (PET bottle fibre) at ₹71-75 (approximately $0.85-0.90) per kg today.

In north India, cotton prices remained close to previous levels. Mills are buying new cotton despite its higher moisture content, preferring it due to quality issues in last year’s crop. North India has seen the arrival of 2,000-2,100 bales of 170 kg cotton. Haryana received around 1,400 bales of 170 kg cotton, comprising 700 new bales and 700 bales of old cotton. Lower Rajasthan received around 400 bales of new cotton, upper Rajasthan received 100 bales, and Punjab received 50 bales. No old cotton arrived in north India except in Haryana. Traders reported that seed cotton was traded between ₹7,000-7,400 (approximately $69.52-69.58) per quintal in north India. Prices are expected to improve once moisture levels decrease. Currently, moisture content is around 12-14 per cent, compared to the ideal 10 per cent.

New cotton was traded in the range of ₹5,800-5,820 (approximately $69.22-69.46) per maund of 37.2 kg across all markets in north India, while old cotton was sold at ₹5,700-5,720 (approximately $68.02-68.26) per maund in Haryana.

Fibre2Fashion News Desk (KUL)