North Indian cotton yarn steady; recycled PC yarn & fibre prices up

05 Sep '24

4 min read

North Indian cotton yarn steady; recycled PC yarn & fibre prices up

Pic: Adobe Stock

Insights

North India cotton yarn prices remained steady in Delhi and Ludhiana due to average demand and rising cotton costs, which have increased production expenses.
Cotton prices have surged due to reports of crop damage in major producing states.
Panipat saw a rise in finer counts of recycled yarn prices amid festival demand.
Market confidence remains low.

North India cotton yarn prices remained steady in both Delhi and Ludhiana, with the market experiencing average demand from the downstream industry. However, rising cotton prices are expected to increase the cost of yarn production, as the natural fibre has gained due to reports of crop damage. Trade sources indicate that spinning mills will face significant pressure to sell their products domestically due to sluggish global demand.

Meanwhile, India’s home textile hub, Panipat, has seen an increase in the prices of finer yarn counts, driven by festival demand. Higher cotton prices have also pushed up the cost of comber in the market. Additionally, recycled polyester fibre prices have risen due to a shortage of PET bottle fibre.

In the Delhi market, cotton yarn prices remained stable amid limited buying activity. Market sentiment was weak as mills struggle to find buyers this festival season. A Delhi trader noted, “Spinning mills are relying more on domestic buyers since they are not receiving sufficient export orders. The recent rise in cotton prices has not supported gains in cotton yarn prices.”

In this market, 30 count combed knitting yarn was traded at ₹263-265 (approximately $3.13-3.16) per kg (GST extra), 40 count combed at ₹285-292 (approximately $3.39-3.48) per kg, 30 count carded at ₹240-242 (approximately $2.86-2.88) per kg, and 40 count carded at ₹265-268 (approximately $3.16-3.19) per kg today.

In Ludhiana, the market also remained stable due to average demand from the consumer industry. Mills are struggling to attract buyers, as market confidence remains low. A Ludhiana trader mentioned that demand for PC yarn is better than for cotton yarn, driven by festival and winter season demand. Cotton yarn demand remained subdued, as garment exports have not shown significant improvement.

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.

Panipat market saw an increase in prices for finer counts of recycled PC yarn due to rising demand. Prices rose by ₹2-5 per kg for 20 and 30 counts of recycled PC yarn. Cotton comber prices also increased by ₹4-5 per kg due to continued gains in natural fibre. Recycled polyester fibre prices rose by ₹3-4 per kg due to a shortage of PET bottle supply. A Panipat trader reported slightly better buying for finer counts of recycled PC yarn, which is mainly used in bed sheets that are in high demand during the festival season. Prices for 10 count recycled PC yarn remained stable due to average demand.

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 $1.55-1.61) per kg. Cotton comber prices were noted at ₹105-110 (approximately $1.25-1.31) per kg and recycled polyester fibre (PET bottle fibre) at ₹71-75 (approximately $0.85-0.89) per kg today.

In north India, cotton prices have increased further due to changing market dynamics. Despite the lack of strong demand from spinning mills, reports of crop damage have driven up cotton prices. Crop losses have been attributed to excessive rainfall in major cotton-producing states like Gujarat, Maharashtra, Telangana, and Karnataka. Prices rose by ₹25-30 per maund of 37.2 kg on Thursday. Traders expect crop damage and delays in new cotton arrivals, but the extent of the damage will only be clear next month, after the monsoon season ends. Lower acreage is also expected to reduce cotton production in India.

Cotton arrivals were almost non-existent in Haryana, Punjab, and Rajasthan. However, traded cotton was exchanged between buyers and sellers. In Punjab, cotton prices ranged from ₹5,825 to ₹5,850 (approximately $69.36-69.66) per maund of 37.2 kg. In Haryana, prices ranged from ₹5,725 to ₹5,750 (approximately $68.17-68.47). In upper Rajasthan, cotton was priced between ₹5,550-₹5,850 (approximately $66.09-69.66) per maund, while Bikaner line cotton sold for ₹5,850 to ₹5,875 (approximately $69.66-69.96) per maund. In lower Rajasthan, cotton was priced at ₹55,500 to ₹58,500 (approximately $660.86-696.58) per candy of 356 kg.