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Cotton yarn, recycled yarn prices down in north India amid uncertainty

12 Aug '24
4 min read
Cotton yarn, recycled yarn prices down in north India amid uncertainty
Pic: Adobe Stock

Insights

  • North India's cotton yarn trade is experiencing a downturn due to the ongoing Bangladesh crisis and upcoming holidays, leading to decreased demand and payment issues.
  • Cotton yarn prices fell in Ludhiana and Delhi, while recycled yarn, cotton comber and recycled polyester fibre also saw price drops.
  • The Panipat home textile market was also affected.
North India's cotton yarn trade experienced a downward trend due to the ongoing crisis in Bangladesh and the upcoming holidays. Cotton yarn prices in the Ludhiana market eased by ₹2 per kg amid slow demand and tight payment conditions. The Delhi market also saw a decline in prices for some counts and varieties of cotton yarn. Additionally, recycled yarn, cotton comber and recycled polyester fibre also lost value due to uncertainty in demand. Market experts noted that buyers were cautious about making new purchases as disruptions in fabric and yarn exports to Bangladesh added to market concerns.

In Ludhiana, cotton yarn prices fell further by ₹2 per kg. The crisis in Bangladesh disrupted the shipment of fabric and yarn, exacerbating payment issues. A trader from Ludhiana told Fibre2Fashion, “Large quantities of fabric and yarn are shipped to Bangladesh, but shipments are stuck at different stages, creating significant uncertainty regarding payments from importers in the neighbouring country.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹255-265 (approximately $3.04-3.16) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹245-255 (approximately $2.92-3.04) per kg and ₹250-260 (approximately $2.98-3.10) per kg, respectively; and carded yarn of 30 count was noted at ₹235-240 (approximately $2.80-2.86) per kg today, according to trade sources.

The Delhi market also witnessed a decrease in prices for a few counts and varieties of cotton yarn, with prices falling by ₹2 per kg due to a lack of buyers. Trade sources indicated that concerns over the Bangladesh crisis and the upcoming holiday dampened market sentiment, leading buyers to avoid new purchases before Independence Day on August 15.

In Delhi, 30 count combed knitting yarn was traded at ₹260-262 (approximately $3.10-3.12) per kg (GST extra), 40 count combed at ₹282-289 (approximately $3.37-3.45) per kg, 30 count carded at ₹237-239 (approximately $2.83-2.85) per kg, and 40 count carded at ₹262-265 (approximately $3.13-3.18) per kg today.

Panipat, India’s home textile hub, also felt the impact of the Bangladesh crisis. Although there were no major exports of home textile products, overall negative sentiment discouraged buyers. As a result, several counts and varieties of recycled yarn slipped by ₹2-5 per kg. Recycled polyester fibre and cotton comber also eased by ₹2 per kg. A trader from Panipat noted that while this is typically the peak demand season, many challenges have dented market sentiment. The Bangladesh crisis also disrupted the supply of fabric scrap used for some counts of recycled yarn. Consequently, 10-count recycled PC (black) yarn remained steady in the market.

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 ₹94-100 (approximately 1.12-1.29) per kg and 30s recycled PC yarn (Grey) at ₹125-130 (approximately $1.49-1.55) per kg. Cotton comber prices were noted at ₹90-92 (approximately $1.07-1.10) per kg and recycled polyester fibre (PET bottle fibre) at ₹72-74 (approximately $0.86-0.88) per kg today.

In north India, cotton prices decreased by ₹75 per maund of 37.2 kg due to slow demand from spinning mills following the Bangladesh crisis. Even the upward trend in ICE cotton prices failed to support domestic cotton prices. Trade sources reported that domestic prices slipped further as buyers were hesitant to take risks amidst the current uncertainty. Regarding the cotton crop in north India, traders said the crop condition is currently favourable. Late sowing in the region is expected to protect the crop from late-season rains, which have caused issues in previous years. The arrival of seed cotton has reduced to almost zero in all the producing states of north India, but cotton trade continues as ginners and stockists sell their existing stocks.

Cotton arrivals have dwindled to negligible levels in the producing states of Haryana, Punjab, and Rajasthan. However, transactions of stocked cotton are ongoing between buyers and sellers. In Punjab, cotton prices ranged from ₹5,675 to ₹5,700 (approximately $67.59-67.89) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,575 to ₹5,600 (approximately $66.40-66.69). In upper Rajasthan, cotton was priced between ₹5,375- ₹5,675 (approximately $64.01-67.59) per maund, with Bikaner line cotton selling for ₹5,675 to ₹5,775 (approximately $67.59-68.78) per maund. In lower Rajasthan, cotton was priced at ₹53,200 to ₹55,200 (approximately $633.60-657.42) 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)

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