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North Indian cotton yarn steady, festive season may boost demand

03 Oct '24
4 min read
North Indian cotton yarn steady, festive season may boost demand
Pic: Adobe Stock

Insights

  • Cotton yarn prices remained stable across north India despite festive season, with moderate demand in Delhi and Ludhiana.
  • Traders expect improved buying during Navratri.
  • Panipat's recycled yarn market also saw stable demand, though recycled polyester fibre prices increased due to rising crude oil prices.
  • New cotton prices in north India rose slightly due to increased arrivals and better quality.
The cotton yarn market in north India remained largely unchanged, with stable prices despite the onset of the festive season. Demand for garments and fabrics stayed steady, and market participants expect better buying activity in the coming days as the next phase of the festive season begins with the festival of Navratri. Cotton yarn prices held steady in both Delhi and Ludhiana. In Panipat, India’s home textile hub, demand in the downstream industry was also stable, which contributed to the steady pricing of recycled yarn. Cotton comber prices remained unchanged as well. However, rising crude oil prices led to an increase in recycled polyester fibre prices, which have risen by ₹2-3 per kg in the past few days.

In Ludhiana, demand was moderate, insufficient to push cotton yarn prices upward. A trader from Ludhiana told Fibre2Fashion, “The next phase of the festive season, starting with Navratri, might bring some positive buying momentum. The consumer industry is purchasing cotton yarn based on immediate demand, and they may consider stocking up if there’s confidence in increased demand from the downstream industry.”

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 is optimistic about a rise in demand for the upcoming summer season. Currently, cotton yarn prices are stable amidst average demand. According to trade sources, production is expected to begin for the summer season, and cotton yarn may see higher demand once the fabric industry ramps up production. Export demand remains weak, but seasonal demand for the summer season could boost cotton yarn sales.

In the Delhi market, 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, the recycled yarn market remained stable, with recycled polyester fibre prices rising by ₹2-3 per kg due to higher crude oil prices. The increase in crude oil prices, driven by heightened conflict in the Middle East, has raised production costs along the polyester value chain. However, market sources indicate there is no direct correlation between crude oil and recycled polyester fibre prices, suggesting that producers are capitalising on market dynamics. The demand for recycled yarn has remained stable, and retail demand for home textile products has not increased significantly this festive season. Nevertheless, the blanket value chain has seen stronger buying activity ahead of the winter season.

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 ₹73-78 (approximately $0.87-0.93) per kg today.

In north India, new cotton prices rose slightly due to average demand and higher arrivals. Trade sources mentioned that mills are showing interest in the new cotton crop despite its higher moisture content, as its quality is better than last season’s crop. The Cotton Corporation of India (CCI) is expected to begin buying seed cotton soon. The arrival of new cotton has increased to around 2,500 bales of 170 kg each in north India. Prices have increased by ₹20 per maund of 37.2 kg. In Haryana, 1,500 bales arrived, including 400 bales from last year’s crop. Punjab saw 100 bales, upper Rajasthan 300 bales, and lower Rajasthan 600 bales.

New cotton was traded in the range of ₹5,820-5,830 (approximately $69.32-69.38) per maund of 37.2 kg across all north Indian markets. Seed cotton prices were between ₹7,000-7,400 (approximately $83.37-88.13) per quintal of 100 kg.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

Fibre2Fashion News Desk (KUL)

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