Cotton yarn demand stagnant in north India; cotton prices rise

The Delhi market observed a consistent trend in cotton yarn prices. Mills found it challenging to raise their prices in line with the increased cost of raw cotton, struggling to even maintain their current yarn rates. A trader from the Delhi market informed Fibre2Fashion, “The weaving industry wasn't expecting increased orders from garment manufacturers, leading to a subdued demand for cotton yarn. The spinners are bearing the burden of the recent hikes in cotton prices.” 

According to Fibre2Fashion's market insight tool TexPro, 30 count combed yarn traded between ₹269-271 per kg (excluding GST), while 40 count combed ranged from ₹299-301 per kg in Delhi. Similarly, 30 count carded was between ₹241-245 per kg, and 40 count carded was ₹271-275 per kg. 

Ludhiana's market also reported reduced cotton yarn demand, with prices remaining unchanged. One Ludhiana-based trader highlighted concerns regarding Chinese imports, which, he believed, were diminishing domestic demand. “The influx of not only yarn but also fabric and garments from China is a part of this trend,” the trader told F2F. 

Prices in Ludhiana ranged from ₹259-269 per kg (including GST) for 30 count cotton combed yarn, ₹249-259 per kg for 20 count, and ₹254-264 per kg for 25 count. Carded yarn of 30 count was priced between ₹239-244 per kg, as per TexPro. 

In Panipat, there was not much festive demand for home furnishings. Even though recycled yarn prices stayed stable, cotton comber prices dropped by ₹1-2 per kg. Local sources indicated a limited domestic demand for the upcoming festive season, expected to only absorb stock from the previous year. The home furnishing sector could not find much support from either the local or global markets. 

In Panipat, prices for various recycled yarns and fibres varied, with 10s recycled PC yarn (Grey) at ₹77-82 per kg (GST inclusive), 10s recycled PC yarn (Black) at ₹50-54 per kg, 20s recycled PC yarn (Grey) at ₹92-97 per kg, and 30s recycled PC yarn (Grey) at ₹135-145 per kg. Comber prices stayed around ₹125-127 per kg, with recycled polyester fibre (from PET bottles) at ₹74-76 per kg. 

Cotton prices in north India remain high, primarily driven by a significant increase in ICE cotton prices. Rajasthan was notably the lead in northern India for this surge in cotton prices, witnessing a rise of around 1 per cent. Prices in Punjab and Haryana were relatively stable. A trade source from Panipat commented on the limited availability of cotton, with buyers finding it hard to secure stock at the current rates. However, this price increase has not affected yarn prices due to the lacklustre downstream demand. Cotton was traded at ₹6,000-6,100 per maund of 37.2 kg in Punjab, ₹5,825-5,925 per maund in Haryana, and ₹6,175-6,275 per maund in upper Rajasthan. In Lower Rajasthan, it sold between ₹57,500-59,000 per candy of 356 kg. 

Fibre2Fashion News Desk (KUL)