Stability in north India's cotton yarn prices seen as positive sign

Cotton yarn prices were noted at previous levels, but buyers are still shy as they want to take cautious approach in buying as they are unsure for better demand from weaving and garment units. A trader from Ludhiana told Fibre2Fashion, “Cotton yarn demand was still weak, but the prices remained stable. The market can get support if crop damage report adds some concerns for supply.” There was expectation that demand will improve in last week of this month or first week of August. In Ludhiana, 30 count cotton combed yarn was sold at ₹370-375 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹360-365 per kg and ₹365-370 per kg respectively. Carded yarn of 30 count was quoted at ₹330-335 per kg.

Delhi market also registered stable trend amid weak buying. Steady trend in prices is seen as positive sign for the market. A trader from Delhi market told that the sentiments will improve when buyers are confident that yarn rates have bottomed out. In Delhi, 30 count combed yarn was traded at ₹370-375 per kg (GST extra), 40 count combed at ₹405-410 per kg, 30 count carded at ₹325-330 per kg and 40 count carded at ₹360-365 per kg.

The prices of recycled yarn of various counts and varieties remained steady amid weak demand in Panipat market. A local trader said that demand did not improve, but recycled yarn prices were bottomed out which can encourage buyers. Panipat market will have to wait longer as traffic restrictions are imposed in many cities of western Uttar Pradesh due to annual Kawad yatra which will affect normal transportation for 8-10 days. In Panipat market, 10s recycled yarn (white) was traded at ₹90-95 per kg (excluding GST), 10s recycled yarn (coloured - high quality) at ₹110-115 per kg, 10s recycled yarn (coloured - low quality) at ₹80-85 per kg and 20s recycled high quality PC yarn (coloured) at ₹125-130 per kg. 10s optical yarn was traded at ₹100-110 per kg in the market. Comber price remained stable at ₹100-104 per kg. The price of recycled polyester fibre (PET bottle fibre) was noted at ₹85 per kg, as per TexPro.

Meanwhile, cotton prices decreased in north India by ₹100-200 per maund of 37.2 kg because of lower demand from spinning mills. According to traders, there were reports of some crop damage in Maharashtra and Gujarat, but the market is waiting for clear picture of the crop. A trader from Bathinda said that market will take direction from the reports of crop damage only after the actual assessment. Cotton was sold lower today at ₹8,400-8,800 per maund of 37.2 kg in Punjab, ₹8,000-8,400 per maund in Haryana and ₹8,600-8,800 per maund in upper Rajasthan.

Fibre2Fashion News Desk (KUL)