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North India cotton yarn faces slow demand, prices remain stable

13 Jan '25
5 min read
North India cotton yarn faces slow demand, prices remain stable
Pic: Adobe Stock

Insights

  • North India's cotton yarn market remained stable despite sluggish demand due to slow exports and fabric imports.
  • Ludhiana and Delhi saw steady yarn prices, while Panipat's recycled yarn market faced weak demand.
  • Cotton prices rose due to higher seed costs and procurement by Cotton Corporation of India, but arrivals declined in Punjab due to Lohri.
North India’s cotton yarn market continued to experience sluggish demand due to slow exports and significant fabric imports into the country. Cotton yarn prices remained stable in key markets like Delhi and Ludhiana. Market sources noted that both markets are grappling with weak demand from the consumer industry and export markets. 

The disparity in cotton yarn prices is a major disadvantage for exports. Additionally, domestic cotton yarn is under pressure due to heavy fabric imports from other countries. Despite rising prices for cotton and seed cotton (kapas), cotton yarn prices have remained steady. The market dynamics currently favour price increases in raw materials. 

Panipat’s recycled yarn market also experienced muted demand. Prices for recycled yarn, cotton comber, and recycled polyester fibre hovered near previous levels without significant movement. 

The Ludhiana market is experiencing a surge in imported fabric, which has dampened local demand to some extent. However, mills are striving to maintain yarn prices despite higher production costs due to the rising cost of natural fibre. 

A trader from the Ludhiana market told Fibre2Fashion, “There has been no improvement in market sentiment. Mills are not overly concerned about the local market, as it is under conflicting pressures. They are attempting to hold cotton yarn prices at current levels, but the influx of imported fabric remains a major concern for the industry.” 

In Ludhiana, 30 count cotton combed yarn was sold at ₹257-267 (approximately $2.97-3.08) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹247-257 (approximately $2.85-2.97) per kg and ₹252-262 (approximately $2.91-3.03) per kg, respectively; and carded yarn of 30 count was noted at 237-242 (approximately $2.74-2.79) per kg today, according to trade sources.

The Delhi market also observed stability in cotton yarn prices. According to market sources, buyers are refraining from making fresh purchases and are adopting a cautious approach in the current market scenario. The steady demand for cotton yarn has contributed to the stability in prices.

In this market, 30 count combed knitting yarn was traded at ₹260-262 (approximately $3.00-3.03) per kg (GST extra), 40 count combed at ₹282-290 (approximately $3.26-3.35) per kg, 30 count carded at ₹237-239 (approximately $2.74-2.76) per kg, and 40 count carded at ₹262-265 (approximately $3.03-3.06) per kg today.

Recycled yarn prices remained stable in Panipat, India’s home textile hub. A trader from Panipat noted that the downstream industry is experiencing slow demand for finished products during the off-peak season. Additionally, heavy production capacity has contributed to weak demand for recycled yarn. However, mills and stockists are refraining from reducing prices.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.90-0.95) per kg (GST paid). Other varieties and counts were noted as: 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.61-0.65) per kg, 20s recycled PC yarn (Grey) at ₹96-102 (approximately 1.11-1.18) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.50-1.56) per kg. Cotton comber prices were noted at ₹102-108 (approximately $1.18-1.25) per kg. The price of recycled polyester fibre (PET bottle fibre) was noted at ₹79-81 (approximately $0.91-0.94) per kg today.

In North India, cotton prices continued their gradual upward trend as seed cotton (kapas) prices rose, driven by an increase in cotton seed prices. Over the last couple of days, prices rose by ₹10 per maund (37.2 kg). Traders reported that the continuous rise in cotton seed prices is supporting seed cotton prices, bolstered further by heavy procurement by the Cotton Corporation of India (CCI). The CCI has already procured around 64-65 lakh bales (170 kg each) during the current season, with plans to return them to the market only after the peak arrival season.

Meanwhile, cotton demand from spinning mills and the downstream industry remains weak. Cotton arrivals in Punjab declined due to the Lohri festival but remained stable in other parts of the country.

North India’s cotton arrival was 10,800 bales of 170 kg, comprising 300 bales in Punjab, 3,000 bales in Haryana, 4,000 bales in upper Rajasthan and 3,500 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,570 to ₹5,580 (approximately $64.32-64.43) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,560 to ₹5,580 (approximately $64.20-64.43). In upper Rajasthan, cotton was priced between ₹5,570- ₹5,590 (approximately $64.32-64.55) per maund. In lower Rajasthan, it was priced at ₹53,200 to ₹54,200 (approximately $614.33-627.03) per candy of 356 kg. While seed cotton was priced as ₹7,200-7,650 (approximately $82.68-87.34) per quintal of 100 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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