Cotton yarn trade slows in north India due to holiday, low demand

26 Aug '24

3 min read

Cotton yarn trade slows in north India due to holiday, low demand

Pic: Adobe Stock

Insights

North Indian cotton yarn prices showed a mixed trend due to varying market conditions.
Prices rose by ₹2 per kg in Ludhiana but remained steady in Delhi amid slow demand and holiday closures.
Mills are pushing for higher prices following an increase in global cotton prices.
Cotton arrivals have decreased significantly across Haryana, Punjab, and Rajasthan.

North Indian cotton yarn prices have shown a mixed trend due to contradictory market conditions. Cotton yarn prices increased by ₹2 per kg in Ludhiana, while prices remained steady in Delhi. The market continued to experience slow demand from the downstream industry and exporters. However, spinning mills pushed for an increase in cotton yarn prices, and last week's rise in ICE cotton influenced the Ludhiana market. Today, north Indian cotton yarn markets are witnessing slow trade due to the Janmashtami festival. There was no trade in Panipat’s recycled yarn market.

In Ludhiana, traders noted that there has not been a significant rise in demand from the consumer industry. However, mills are pushing for a price increase following the rise in global cotton prices. A trader from Ludhiana told Fibre2Fashion, “Ginners and spinners are trying to present a more favourable outlook for the cotton yarn market. They are attempting to increase their mill rates to improve their margins. Stronger ICE cotton also supported the mills' efforts to raise prices.”

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.

However, the Delhi market saw stability in cotton yarn prices. A trader mentioned that stockists and traders are offering lower prices despite the bullish sentiment of the spinning mills. In fact, the consumer industry and exporters are still slow to make fresh purchases. The cotton yarn market cannot see a sustainable rise until there is a revival in demand from the downstream industry.

In this market, 30 count combed knitting yarn was traded at ₹260-263 (approximately $3.10-3.14) per kg (GST extra), 40 count combed at ₹282-290 (approximately $3.37-3.45) per kg, 30 count carded at ₹237-240 (approximately $2.83-2.85) per kg, and 40 count carded at ₹262-265 (approximately $3.13-3.18) per kg today.

In north India, cotton prices were slightly higher since late last week amid slow trade. Prices were ₹25 per maund of 37.2 kg higher in the last couple of days. However, traders noted that cotton prices remained stable today. Prices had risen slightly on the last working day of last week due to higher ICE cotton prices. The arrival of seed cotton has reduced to almost zero in all the producing states of north India. However, cotton trade continued as ginners and stockists are selling their stocks.

Cotton arrival has reduced to negligible levels in all the producing states of Haryana, Punjab, and Rajasthan. Nevertheless, stocked cotton was traded between buyers and sellers. Cotton prices in Punjab ranged from ₹5,725 to ₹5,735 (approximately $68.25-68.37) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,625 to ₹5,635 (approximately $67.05-67.17). In upper Rajasthan, cotton was priced between ₹5,425-₹5,725 (approximately $64.67-68.25) per maund. Bikaner line cotton sold for ₹5,800 to ₹5,825 (approximately $69.14-69.44) per maund. In lower Rajasthan, cotton was priced at ₹53,400 to ₹55,700 (approximately $636.57-663.98) per candy of 356 kg.