Yarn prices stable in north India as new cotton arrives in Haryana

16 Sep '24

5 min read

Yarn prices stable in north India as new cotton arrives in Haryana

Pic: Adobe Stock

Insights

Cotton yarn prices in northern India remained stable despite weak demand and rising cotton costs in Delhi and Ludhiana.
Buyers were hesitant to make new deals, though demand is expected to increase post-monsoon and during the festival season.
New cotton arrivals began in Haryana, with limited movement in prices.
In Panipat, recycled polyester fibre prices rose due to PET bottle shortages.

Cotton yarn prices in north India remained stable despite slow demand and rising cotton costs. Markets in Delhi and Ludhiana saw no significant price movement, with buyers hesitant to make new deals due to uncertainty in downstream industries. However, the end of the monsoon season has raised hopes for increased demand in the coming month. Market experts anticipate higher business activity during the festival season. Manufacturing is also expected to pick up as corporate buyers re-enter the market for garment purchases.

Meanwhile, new cotton arrivals have begun in a few Haryana mandis. In Panipat, India’s home textile hub, recycled polyester fibre prices increased by ₹2 per kg due to a shortage of PET bottle fibre, while cotton comber prices widened due to increased supply. However, recycled cotton yarn prices remained stable.

Delhi market noticed steadiness in cotton yarn prices amid poor demand. Buyers were silent for fresh deals as they are still lacking confidence. A trader from Delhi told Fibre2Fashion, “Buyers were cautious as they don’t see sudden rise in demand from weaving industry. But the demand may improve after return of monsoon. There is possibility of strong buying in October when festival season will reach in full gear.”

The cotton yarn market in Delhi remained steady amid weak demand. Buyers were hesitant to make fresh deals, as confidence remained low. A trader from Delhi told Fibre2Fashion, “Buyers are cautious as they don’t foresee a sudden increase in demand from the weaving industry. However, demand may improve after the monsoon, with a potential for stronger buying in October when the festive season reaches its peak.”

In this market, 30 count combed knitting yarn was traded at ₹267-270 (approximately $3.18-3.22) per kg (GST extra), 40 count combed at ₹289-297 (approximately $3.44-3.54) per kg, 30 count carded at ₹244-246 (approximately $2.91-2.93) per kg, and 40 count carded at ₹269-272 (approximately $3.20-3.24) per kg today.

Similarly, the Ludhiana market saw stable cotton yarn prices due to limited demand. Market sentiment did not improve during the week. A trader from Ludhiana noted that mills are eager to raise their rates following a rise in the price of natural fibres, but they are not receiving support from demand. The recent increase in cotton prices has squeezed spinners' margins.

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.

In Panipat, recycled polyester fibre prices rose while cotton comber eased. Recycled yarn was traded steadily amid slightly better demand. A trader from Panipat reported a shortage of PET bottle supply, which has increased costs for yarn manufacturers. The supply has been diverted to manufacturers who convert used PET bottles into new ones, a more lucrative process than polyester production. Recycled polyester fibre prices rose by ₹2 per kg.

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 ₹100-110 (approximately $1.19-1.31) per kg and recycled polyester fibre (PET bottle fibre) at ₹73-77 (approximately $0.87-0.92) per kg today.

In north India, a small quantity of new cotton arrived in Haryana, with traders reporting around 100 bales in a few mandis. Seed cotton (Narma) was sold at ₹7,200-7,300 (approximately $85.84-87.03) per quintal, while cotton for current month delivery traded around ₹5,850 (approximately $69.74) per maund (37.2 kg).

Last year’s cotton saw limited price movement since Thursday. Prices stabilised today after slight gains late last week. North Indian spinning mills have limited buying interest, remaining cautious due to concerns over cotton quality. There is a shortage of good quality cotton in the region, though lower Rajasthan has slightly better quality cotton, despite a recent pest attack similar to those seen in upper Rajasthan and other north Indian states.

No old cotton arrivals were reported in Haryana, Punjab, and Rajasthan, though token arrivals were noted in Haryana. In Punjab, old cotton prices ranged from ₹5,885 to ₹5,890 (approximately $70.16-70.22) per maund (37.2 kg), while in Haryana, prices ranged from ₹5,785 to ₹5,790 (approximately $68.97-69.03). In upper Rajasthan, cotton prices ranged from ₹5,550 to ₹5,900 (approximately $66.17-70.34) per maund, with Bikaner line cotton selling for ₹5,900 to ₹6,000 (approximately $70.34-71.53) per maund. In lower Rajasthan, cotton was priced at ₹56,000 to ₹59,800 (approximately $667.64-703.40) per candy (356 kg).