India's MMF yarn markets decline amid slow demand & Bangladesh crisis

Traders said that markets have been experiencing slow demand for several weeks. Seasonal improvement in demand remains elusive. The Bangladesh crisis has further dampened hopes for a revival in the man-made yarn market. Uncertainty regarding shipments and payments is a significant concern for the Indian market.

The Ludhiana market saw a steep decline in PC yarn prices, with polyester yarn also trading lower by ₹3-4 per kg due to slow demand and concerns regarding the Bangladesh crisis. A trader from the Ludhiana market told Fibre2Fashion, “The market is already facing slow demand and very tight payment flows. The recent turmoil in Bangladesh has also added to the woes of the yarn market. The crisis immediately halted yarn and fabric exports to the neighbouring country. The hope for a diversion of garment export orders remains elusive due to several challenges.”

In Ludhiana, 30 count PC combed yarn (48/52) traded at ₹207-217 (approximately $2.47-2.58) per kg (GST inclusive); 30 count PC carded yarn (65/35) at ₹195-205 (approximately $2.32-2.44) per kg; 20 count recycled polyester fibre yarn at ₹114-122 (approximately $1.36-1.45) per kg; 30 count polyester spun yarn at ₹161-170 (approximately $1.92-2.03) per kg (GST inclusive); and recycled polyester fibre (PET bottle fibre) at ₹76-78 (approximately $0.91-0.93) per kg.

In the Surat market, most varieties and counts of polyester yarn were traded lower by ₹1-2 per kg due to a recent reduction in fibre and upstream raw material prices. Slow demand from downstream sectors was also driving polyester yarn prices downward. According to market sources, domestic manufacturers had reduced fibre and raw material prices to align with global rates after a fall in crude oil prices. Bangladeshi yarn export orders were also a cause of concern for the market.

In Surat, 30 count polyester spun yarn was traded at ₹147-148 (approximately $1.75-1.76) per kg (GST extra); 40 count poly spun yarn at ₹161-162 (approximately $1.92-1.93) per kg; 50/48 fully drawn yarn (FDY) at ₹119-120 (approximately $1.42-1.43) per kg; 75/72 FDY at ₹108-109 (approximately $1.29-1.30) per kg; and 75 bright yarn at ₹107-108 (approximately $1.27-1.29) per kg.

Viscose yarn prices further declined in Surat and Mumbai. Trade sources stated that slower demand from the weaving industry and higher imports, especially from China, contributed to the decline in prices. Viscose yarn prices fell by ₹2-3 per kg in both markets. Traders mentioned that the Bangladesh crisis has exacerbated difficulties for the domestic yarn market, leading to uncertainty regarding shipments and payments.

In Mumbai, imported 30 count viscose vortex yarn was priced at ₹194-200 (approximately $2.31-2.38) per kg, while local 30 count ring-spun viscose yarn was priced at ₹201-206 (approximately $2.39-2.45) per kg. In Surat, 30 count viscose compact yarn (local) was sold at ₹203-205 (approximately $2.42-2.44) per kg (GST extra), and 30 count viscose vortex yarn at ₹200-202 (approximately $2.38-2.41) per kg.

In north India, cotton prices remained stable amid slow demand. ICE cotton traded lower today after losses last night. However, domestic sellers were not inclined to reduce prices, preferring to hold their stocks for higher prices. Cotton arrivals have reduced to nearly zero in all the producing states of north India. Ginners and stockists now hold the remaining stocks for sale during the current season.

Cotton arrivals have become negligible in the producing states of Haryana, Punjab, and Rajasthan. However, stocked cotton was traded between buyers and sellers. Cotton prices in Punjab ranged from ₹5,750 to ₹5,775 (approximately $68.52-68.82) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,650 to ₹5,675 (approximately $67.33-67.63). In upper Rajasthan, cotton was priced between ₹5,450-₹5,750 (approximately $64.94-68.52) per maund. Bikaner line cotton sold for ₹5,850 to ₹5,950 (approximately $69.71-70.90) per maund. In lower Rajasthan, cotton was priced at ₹53,500 to ₹56,000 (approximately $637.53-675.66) per candy of 356 kg.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

Fibre2Fashion News Desk (KUL)