North India's cotton yarn prices to bottom out soon

In Delhi, cotton yarn prices saw a steep fall of ₹10-30 per kg last week. Traders feel that the market will bottom out very soon because buyers will come out for cheaper yarn. A trader from Delhi market told Fibre2Fashion, “Falling prices are attracting buyers. It is a positive sign to see export orders, even in smaller quantity.” Sources said that the production disparity for spinning mills has ended as a fall in cotton prices reduced cost of production. The weaving industry may also come up in parity, leading to improved market sentiments. 

In the Delhi market, 30 count combed yarn was traded at ₹315-320 per kg (GST extra), 40 count combed at ₹350-355 per kg, 30 count carded at ₹285-290 per kg and 40 count carded at ₹320-325 per kg, as per Fibre2Fashion’s market insight tool TexPro. 

On the other hand, the Ludhiana market witnessed stability amid silent buying. Cotton yarn prices remained unchanged. Weaving industry units are still buying cotton yarn to fulfil their immediate needs. In Ludhiana, cotton yarn prices dropped ₹10-20 per kg during the last one week. 30 count cotton combed yarn was sold at ₹330-335 per kg (GST inclusive), according to TexPro. 20 and 25 count combed yarn were traded at ₹320-330 per kg and ₹325-335 per kg respectively. Carded yarn of 30 count was quoted at ₹285-290 per kg. 

Traders’ activities remained weak in Panipat as Traders are busy in Dussehra celebration. The Festival is celebrated here with great zeal. The market may face a shortage of yarn in the coming weeks as many coal-based dying units closed due to restrictions effective from October 1. Many industrial and other activities get affected every year in adjoining areas of Delhi NCR due to the restrictions imposed to contain the alarming rise in air pollution during winters.

In the Panipat market, recycled PC yarn of major varieties were traded at previous rates. 10s recycled yarn (white) was traded at ₹88-93 per kg (excluding GST), 10s recycled yarn (coloured - high quality) at ₹100-105 per kg, 10s recycled yarn (coloured - low quality) at ₹80-85 per kg and 20s recycled high quality PC yarn (coloured) at ₹105-110 per kg. 30 count recycled yarn was sold at ₹155-160 per kg. 10s optical yarn was traded at ₹100-110 per kg in the market. Comber prices were ruling at ₹120-125 per kg. Comber prices decreased to ₹115-120 per kg in south India. Falling prices will be viable for the Panipat market. Recycled polyester fibre (PET bottle fibre) was steady at ₹88-90 per kg. 

North India cotton prices improved by ₹100-150 per maund of 37.2 kg as arrival did not increase and the demand was strong. According to the traders, cotton arrival reduced as a steep fall in prices discouraged the sellers. But buyers are aggressively buying cotton to meet their commitments against previous forward deals. Daily arrival in north India comprising Punjab, Haryana, upper Rajasthan and lower Rajasthan was 15,000 bales of 170 kg. Cotton was traded at ₹6,900-6,950 per maund for ready trade. Forward cotton for October was traded at ₹6,650-6,700 per maund. 

Fibre2Fashion News Desk (KUL)