North India cotton yarn remains stable despite high demand

02 Dec '24

4 min read

North India cotton yarn remains stable despite high demand

Pic: Adobe Stock

Insights

Cotton yarn prices in north India remained stable despite improved demand.
Markets like Delhi, Panipat, and Ludhiana saw steady prices, though mills aimed to raise rates due to higher fibre costs.
Recycled yarn demand increased for winter garments, offsetting home furnishing sector dips.
Cotton arrivals rose in western states, impacting north India's demand.

North India cotton yarn prices steadied despite visible indications of better demand. North India’s major markets, Delhi and Panipat, noticed stability in cotton yarn prices. Market experts said that cotton yarn demand has picked up. Mills are trying to hike their selling rates after support from costlier natural fibre. However, market prices of cotton yarn did not significantly rise in the last couple of days. Cotton yarn prices had seen a substantial rise in the last week. However, its prices were under pressure on Monday in north India. Panipat also saw steadiness in recycled yarn prices. However, the market noticed good demand for blankets and winter garments made from recycled yarn. The country, especially north India, has begun to shiver in the winter season.

Cotton yarn demand was better in the Ludhiana market despite stability in prices. The market noticed cotton yarn buying for summer garments. A trader from the Ludhiana market told Fibre2Fashion, “Ludhiana market is known for producing leggings. Its production increased ahead of the winter season. The wedding season is still running in full swing, which is a major selling occasion. The summer season encouraged manufacturers to ramp up their production. Not only cotton but also polyester-cotton yarn demand improved in the last couple of weeks.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹257-267 (approximately $3.03-3.15) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹247-257 (approximately $2.92-3.03) per kg and ₹252-262 (approximately $2.97-3.09) per kg, respectively; and carded yarn of 30 count was noted at ₹237-242 (approximately $2.80-2.86) per kg today, according to trade sources.

The Delhi market also noticed stability in cotton yarn prices. There was good demand in the market from the downstream industry. According to market sources, after the rise in cotton prices, spinning mills are trying to increase yarn prices to improve their margins.

In Delhi, 30 count combed knitting yarn was traded at ₹260-262 (approximately $3.07-3.09) per kg (GST extra), 40 count combed at ₹282-290 (approximately $3.33-3.42) per kg, 30 count carded at ₹237-239 (approximately $2.80-2.82) per kg, and 40 count carded at ₹262-265 (approximately $3.09-3.13) per kg today.

The Panipat market is showing strong demand for blankets and winter garments as temperatures dip lower and lower in north India. However, recycled yarn did not see any significant movement in the prices. Cotton comber and recycled polyester fibre were also traded stably in the market. Traders said that mills still hold heavy stocks of recycled yarn. Higher demand for winter garments offset slow buying from the home furnishing segment.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹78-82 (approximately $0.92-0.97) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.63-0.66) per kg, 20s recycled PC yarn (Grey) at ₹96-102 (approximately 1.14-1.21) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.53-1.59) per kg. Cotton comber prices were noted at ₹100-102 (approximately $1.18-1.20) per kg and recycled polyester fibre (PET bottle fibre) at ₹80-82 (approximately $0.95-0.97) per kg today.

In north India, cotton prices further eased by ₹20-30 per maund of 37.2 kg. The natural fibre has lost ₹50-60 in the last two trading sessions. Weaker ICE cotton and the increasing arrival of cotton yarn in West Indian states depressed sentiments in north India’s cotton trade. According to a trader, north India is consistently recording slow cotton arrivals, but arrivals increased in western states. This was the main cause of slow demand in north India.

North India’s cotton arrival was 17,200 bales of 170 kg, comprising 700 bales in Punjab, 4,500 bales in Haryana, 5,500 bales in upper Rajasthan, and 6,500 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,650 to ₹5,660 (approximately $66.69-66.81) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,640 to ₹5,650 (approximately $66.57-66.69). In upper Rajasthan, cotton was priced between ₹5,650 and ₹5,660 (approximately $66.69-66.81) per maund. In Lower Rajasthan, it was priced at ₹53,900 to ₹54,900 (approximately $636.19-648.00) per candy of 356 kg, while seed cotton was priced at ₹7,200-7,500 (approximately $86.39-91.12) per quintal of 100 kg.