Market sentiment has improved, with buyers showing confidence as Nirmala Sitharaman recently assured industry bodies of postponing Section 43B(h) of the Income Tax Act 2013 (related to new payment regulations). Buyers have re-entered the market following the government assurance. Last week, the Ludhiana market witnessed selling pressure, contributing to a decline in cotton prices. Meanwhile, traders in Panipat's recycled yarn market have responded positively, finding relief from payment issues. Despite sluggish demand, recycled yarn and its materials maintained steady sales on the first day of this week.

Gulshan Jain, a trader from the Ludhiana market, told Fibre2Fashion, "Cotton yarn prices have recovered after a steep fall last week. Stronger cotton prices and the government's assurance on payment rules have brought confidence back to the market. Buyers have been active in seeking new deals. However, spinning mills have shown reluctance to sell their production, anticipating further appreciation in ICE cotton prices." Last Friday, stockists and dealers faced selling pressure, leading to a decline in prices. In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 per kg and ₹254-264 per kg, respectively; and carded yarn of 30 count was noted at ₹238-245 per kg.

A Delhi-based trader informed F2F, "Cotton yarn prices have increased by ₹3 per kg across most varieties and counts, as mills showed reluctance to sell their productions. The mills have been raising prices following a steep rise in ICE cotton. Buyers have also shown interest in negotiating new deals to meet their requirements." In this market, 30 count combed yarn was traded at ₹258-263 per kg (excluding GST), 40 count combed at ₹283-288 per kg, 30 count carded at ₹241-246 per kg, and 40 count carded at ₹266-271 per kg, according to Fibre2Fashion's market insight tool TexPro.

Recycled yarn traded steadily in the market. However, traders expressed confidence in anticipating higher demand in the days to come. Ankur Bansal, a trader from Panipat, told F2F, "Buyers will not need to worry about the new payment provision as the government is considering postponing it. The consumer industry will purchase recycled yarn as needed, and manufacturers will not have to concern themselves with additional financial burdens or tax liabilities. Demand for recycled yarn is expected to improve soon."

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹76-80 per kg (inclusive of GST). Other varieties and counts included 10s recycled PC yarn (Black) at ₹51-54 per kg, 20s recycled PC yarn (Grey) at ₹88-93 per kg, and 30s recycled PC yarn (Grey) at ₹133-142 per kg. Cotton comber prices were noted at ₹112-114 per kg, while recycled polyester fibre (PET bottle fibre) was noted at ₹73-76 per kg, according to TexPro.

Cotton prices in north India have eased by ₹50 per maund following last week's rise. ICE cotton also settled lower after a prolonged rally, having breached a level of 92 US cents per pound from the previous average range of 80-82 US cents per pound. The ICE cotton March 2024 contract traded at 90.66 US cents per pound. Traders noted a surge in north India cotton prices last Friday following the rise in ICE cotton, but prices declined on Monday. Spinning mills continued to buy cotton on a regular basis.

Today's arrivals were noted at 15,000 bales of 170 kg each. State-wise arrivals were reported as follows: Punjab 1,500 bales, Haryana 4,500 bales, upper Rajasthan 5,000 bales, and lower Rajasthan 4,00 bales. Cotton was priced at ₹5,550-5,600 per maund in Punjab and ₹5,500-5,600 in Haryana, with upper Rajasthan prices ranging from ₹5,400-5,600 per maund of 37.2 kg. Bikaner line cotton was sold at ₹5,600-5,700 per maund. In lower Rajasthan, cotton was priced at ₹52,800-54,800 per candy of 356 kg.

Fibre2Fashion News Desk (KUL)