North Indian cotton yarn market optimistic; prices steady

11 Jul '24

4 min read

North Indian cotton yarn market optimistic; prices steady

Pic: Adobe Stock

Insights

Cotton yarn prices in north India remained stable despite weak demand in Delhi and Ludhiana markets.
Traders expect demand to improve in the coming weeks, with export demand likely increasing by September.
In the Panipat market, cotton comber and recycled polyester fibre prices fell due to low demand, while recycled yarn prices stayed steady.

North India cotton yarn prices did not see any significant movement amid sluggish demand. The Delhi and Ludhiana markets received weak to average demand, and cotton yarn prices remained steady. However, traders were optimistic about an improvement in demand in the coming weeks. Export demand is likely to improve by September. Cotton comber and recycled polyester fibre were traded lower in the Panipat market, but recycled yarn prices were stable. The market noted average demand from the downstream industry.

Cotton yarn prices remained steady in the Delhi market, which witnessed average demand from fabric manufacturers. A trader from the Delhi market told Fibre2Fashion, "The market has yet to see higher seasonal demand. Retail demand for garments will improve in the domestic market in the coming weeks. Cotton yarn export demand is also likely to improve by September.”

In Delhi, 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.

The Ludhiana market also witnessed steadiness in cotton yarn prices amid poor demand. The market noted weak sentiment in cotton yarn trade. According to trade sources, market sentiment was weak as imported fabric is a cause of concern for spinning mills and traders. Slower export of cotton yarn also dampened market sentiment.

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.

Cotton comber prices eased ₹3-4 per kg in the last couple of days. Slow demand from the home textile industry was the main factor in the price fall. Recycled polyester fibre also eased by ₹2 per kg as buying was discouraged by higher prices. It had seen a rise in prices after the hike in virgin polyester fibre and its raw material. However, recycled PC yarn prices were steady in the Panipat market. Buyers were taking a cautious note after the rise in prices.

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 at 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 ₹106-108 (approximately $1.27-1.29) per kg and recycled polyester fibre (PET bottle fibre) at ₹78-82 (approximately $0.93-0.98) per kg today.

In north India, cotton prices were also stable today. Traders said that the market noted limited trade due to lower arrival. Mills were buying cotton as per their immediate consumption. Mostly, stocked cotton is traded in the market. Ginners have already stopped production amid the declining arrival of seed cotton. Ginners, stockists, and MNCs have limited stock for the next three months.

Today's 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 $70.61-70.91) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,825 to ₹5,850 (approximately $69.71-70.01). In upper Rajasthan, cotton was priced between ₹5,625 and ₹5,925 (approximately $67.32-70.91) per maund. Bikaner line cotton sold for ₹5,900 to ₹6,000 (approximately $70.61-71.80) per maund. In lower Rajasthan, cotton was priced at ₹54,300 to ₹58,000 (approximately $649.82-694.10) per candy of 356 kg.