North Indian cotton yarn prices steady amid mixed demand

29 Aug '24

4 min read

North Indian cotton yarn prices steady amid mixed demand

Pic: Adobe Stock

Insights

Cotton yarn prices in north India remained stable, with slight demand improvement in Ludhiana due to the festive season.
Delhi saw average demand, while Panipat's recycled yarn market experienced slow sales but expects improvement once old stocks are cleared.
Cotton prices eased in north India due to lower quality and a decline in ICE cotton.

Cotton yarn prices in north India remained largely stable. In Ludhiana, there was an uptick in demand due to the festive season, while Delhi saw average demand for this intermediary textile product. Market experts noted that garment demand from both domestic retail and export markets remains subdued. However, the entire textile value chain is closely monitoring the domestic cotton crop, as fluctuations in production could impact yarn and fabric prices. In Panipat, recycled yarn prices also stayed stable amid slow demand, which may improve once old stocks are cleared.

In the Ludhiana market, cotton yarn prices held steady. The market experienced slightly better demand from the domestic consumer sector. A trader from Ludhiana told Fibre2Fashion, “Although current seasonal demand for cotton yarn is not very significant, it is better than last month. Recent gains in ICE cotton have also encouraged the buying of cotton yarn.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹260-270 (approximately $3.10-3.22) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹250-260 (approximately $2.98-3.10) per kg and ₹255-265 (approximately $3.04-3.16) per kg, respectively; and carded yarn of 30 count was noted at ₹240-245 (approximately $2.86-2.92) per kg today, according to trade sources.

The Delhi market also saw stable cotton yarn prices with average demand. A trader commented that the upcoming cotton crop will guide the yarn market. Demand dynamics are expected to remain stable in the coming months, but cotton yarn trade will depend on the crop's size and quality.

In Delhi, 30 count combed knitting yarn was traded at ₹260-263 (approximately $3.10-3.14) per kg (GST extra), 40 count combed at ₹282-290 (approximately $3.37-3.45) per kg, 30 count carded at ₹237-240 (approximately $2.83-2.85) per kg, and 40 count carded at ₹262-265 (approximately $3.13-3.18) per kg today.

In Panipat, India's home textile hub, there was limited demand from the downstream industry. Recycled yarn prices remained stable, and raw materials like cotton comber and recycled polyester also saw no significant price changes. A trader from Panipat noted that recycled yarn demand has not improved yet as traders and manufacturers are still clearing old stocks. Once these stocks are cleared, festival demand is expected in the coming weeks.

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 ₹94-100 (approximately 1.12-1.29) per kg and 30s recycled PC yarn (Grey) at ₹125-130 (approximately $1.49-1.55) per kg. Cotton comber prices were noted at ₹94-98 (approximately $1.12-1.17) per kg and recycled polyester fibre (PET bottle fibre) at ₹71-73 (approximately $0.81-0.87) per kg today.

In north India, cotton prices eased slightly due to poor quality and a decline in ICE cotton. However, prices were higher in lower Rajasthan, where cotton quality is relatively better. Cotton prices eased by ₹15-25 per maund of 37.2 kg in most north Indian markets, except in lower Rajasthan, where the fibre traded ₹200-300 higher per candy of 356 kg. Traders noted that weak ICE cotton discouraged buying in the domestic market.

Cotton arrivals were minimal in all producing states, including Haryana, Punjab, and Rajasthan. However, stocked cotton continued to trade between buyers and sellers. In Punjab, cotton prices ranged from ₹5,710 to ₹5,720 (approximately $68.07-68.19) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,610 to ₹5,620 (approximately $66.88-67.00). In upper Rajasthan, cotton was priced between ₹5,400-₹5,700 (approximately $64.38-67.96) per maund, while Bikaner line cotton sold for ₹5,780 to ₹5,810 (approximately $68.91-69.27) per maund. In lower Rajasthan, cotton was priced at ₹53,600 to ₹56,000 (approximately $639.02-667.63) per candy of 356 kg.