North India's cotton yarn prices steady amid slow downstream demand

08 Jul '24

4 min read

North India's cotton yarn prices steady amid slow downstream demand

Pic: Adobe Stock

Insights

Cotton yarn prices in north India remained steady amid slow demand from the downstream industry.
Market observers do not expect demand to improve soon, with both export orders and domestic demand at average levels.
Despite typically higher seasonal demand, no significant increase was noted.
Delhi and Ludhiana markets saw stable prices due to slow demand.

Cotton yarn prices were steady in north India amid slow demand from the downstream industry. Market observers felt that demand from the downstream industry may not improve in the coming few weeks. Export orders and domestic demand continued to be noted at an average level. Seasonally, the manufacturing activities pick up in mid-June or early-July due to higher export orders and domestic festival demand pick up. But cotton yarn market did not notice such increase in demand. Panipat’s recycled yarn market also noted stability in prices amid average demand. The market had noticed slightly upward trend due to better demand from the downstream industry.

Cotton yarn prices were hovering at the previous levels in Delhi market. There was slow to average demand from fabric manufacturers. A trader from the Delhi market told Fibre2Fashion, “The market may not witness higher demand in the coming weeks. Fabric manufacturers were not in hurry for buying cotton yarn as they did not expect quick rise in demand from garment industry. Buyers are adopting cautious approach for new purchases.” In this market, 30 count combed knitting yarn was traded at ₹266-268 (approximately $3.19-3.21) per kg (GST extra), 40 count combed at ₹286-293 (approximately $3.43-3.51) per kg, 30 count carded at ₹241-243 (approximately $2.89-2.91) per kg, and 40 count carded at ₹266-269 (approximately $3.19-3.22) per kg today.

Ludhiana market also saw stability in cotton yarn prices due to poor demand. Imported fabric is still cause of concern for yarn market. According to trade sources, fabric and garment manufacturing activities are very slow as retail demand is yet to pick up in the domestic market. Export orders are also not very encouraging.

In Ludhiana, 30 count cotton combed yarn was sold at ₹265-275 (approximately $3.18-3.30) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹255-265 (approximately $3.06-3.18) per kg and ₹260-270 (approximately $3.12-3.24) per kg, respectively; and carded yarn of 30 count was noted at ₹245-250 (approximately $2.94-3.00) per kg today, according to trade sources.

Recycled PC yarn prices have stabilised after last week rise in the Panipat market. Buyers were taking cautious note after rise in the prices. Trade sources said that retail demand of home textiles may improve in the coming weeks, but buyers still lack confidence about retail demand.

In Panipat, 10s recycled PC yarn (grey) was traded at ₹80-84 (approximately $0.96-1.01) per kg (GST paid). Other varieties and counts were noted as: 10s recycled PC yarn (black) at ₹53-56 (approximately $0.63-0.67) per kg, 20s recycled PC yarn (grey) at ₹94-100 (approximately 1.13-1.20) per kg and 30s recycled PC yarn (grey) at ₹130-135 (approximately $1.56-1.62) per kg. Cotton comber prices were noted at ₹112-114 (approximately $1.34-1.37) per kg. The price of recycled polyester fibre (PET bottle fibre) was noted at ₹80-84 (approximately $0.96-1.01) per kg today.

In north India, cotton prices steadied on Monday after slight gains in late last week. The prices were ₹25 per maund of 37.2 kg higher since last Thursday. Traders said that spinning mills are buying cotton on regular basis as mostly mills except large companies did not build up huge stocks. However, they are taking a cautious approach in buying as demand from garment industry is not picking up. Around three-fourths supply of cotton is coming from stocks built up by ginners, stockists and MNCs.

Today’s cotton arrivals were 400 bales of 170 kg in north India. State-wise arrivals were as follows: 300 bales in Haryana, 50 bales in upper Rajasthan, and 50 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,900 to ₹5,925 (approximately $70.67-70.97) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,800 to ₹5,850 (approximately $69.47-70.07). In upper Rajasthan, cotton was priced between ₹5,600- ₹5,925 (approximately $67.07-70.97) per maund. Bikaner line cotton was sold for ₹5,900 to ₹6,000 (approximately $70.67-71.87) per maund. In lower Rajasthan, cotton was priced at ₹54,300 to ₹58,000 (approximately $650.38-694.70) per candy of 356 kg.