Cotton yarn prices have softened by ₹3-5 per kg in the Delhi and Ludhiana markets. Trading in north India's cotton yarn market resumed after Diwali on a weaker note. Buyers remained silent and exercised caution in new purchases. Traders noted that the post-Diwali market activity was not at normal levels. It is expected that the market will take a few more days to return to normal, with hopes for standard trade levels from next week. However, market experts are still uncertain about any potential improvements. They observed that mills have lowered yarn prices following a recent ease in natural fibre costs. The market is keenly anticipating an increase in demand from the downstream industry. 

The Delhi market has seen a declining trend in cotton yarn prices, with slow demand from the downstream industry. A trader from the Delhi market told Fibre2Fashion, "There has been no improvement in market sentiments. Trade has not returned to normal levels after Diwali. The market is expected to take cues next week." 

In Delhi, 30 count combed yarn was traded at ₹250-255 per kg (GST extra), 40 count combed at ₹75-280 per kg, 30 count carded at ₹227-231 per kg and 40 count carded at ₹252-255 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The Ludhiana market also experienced poor demand, leading to a ₹3 per kg drop in cotton yarn prices. A trader from the Ludhiana market told F2F, "Mills were under pressure to sell their stock, as they did not see an improvement in demand after Diwali. The recent fall in cotton prices also motivated them to reduce yarn prices to attract buyers." 

In Ludhiana, 30 count cotton combed yarn was sold at ₹253-263 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹243-253 per kg and ₹248-258 per kg respectively; and carded yarn of 30 count was noted at 233-238 per kg, as per TexPro. 

Panipat’s recycled yarn market noted ease in cotton comber. Its prices eased ₹1 per kg in the market. Fall in cotton yarn prices led to decline in its by-product comber. Although, recycled yarn prices remained steady. Trader said that buyers were silent in the market. Entire value chain of home furnishing segment is facing weaker sentiments. Cotton comber eased ₹4-5 per kg as downstream industry slowed down production. It reduced demand of cotton comber. Traders said that comber supply also increased as spinning mills are producing regularly. While buyers from downstream industry were very cautious for new purchases. Festivity was also affecting buying of recycled yarn. 

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 ₹85-90 per kg and 30s recycled PC yarn (Grey) at ₹133-142 per kg. However, cotton comber prices were noted to ₹111-112 per kg. Cotton comber prices eased ₹1 per kg in post-Diwali market. Recycled polyester fibre (PET bottle fibre) was noted at ₹67-70 per kg. 

Cotton prices in north India improved following a recovery in ICE cotton. Domestic cotton futures also showed a positive trend on Thursday. Prices rose by ₹40-50 per maund (37.2 kg) post-Diwali. Traders said there was a strong demand from spinning mills, with buyers drawn in after the recent drop in natural fibre prices. Cotton arrivals were lower as farmers were occupied with winter crop sowing. Total arrivals in north India were at 20,000 bales of 170 kg, down from 28,000-30,000 bales pre-Diwali. State-wise arrivals were Punjab at 2,000 bales, Haryana at 6,000 bales, upper Rajasthan at 6,000 bales, and lower Rajasthan at 6,000 bales. The natural fibre was priced between ₹5,550-5,650 in Punjab and Haryana, and ₹5,450-5,550 per maund in upper Rajasthan. In lower Rajasthan, the price was ₹53,700-55,700 per candy of 356 kg. Prices were higher in the Bikaner line due to better quality. 

Fibre2Fashion News Desk (KUL)