North India's cotton yarn turns attractive after steep fall in prices

In Delhi, cotton yarn prices saw a steep fall of up to ₹20 per kg in the last one week. But there is optimism for improved buying in the weeks to come. “The drastic fall in prices have made cotton yarn attractive. Indian cotton yarn is now cheaper than its Pakistani counterpart. Therefore, foreign buyers of garments and raw materials who buy from Pakistan, were approaching Indian exporters. Ultimately, the consumer industry will make a strong comeback,” a trader from Delhi market told Fibre2Fashion.

In the Delhi market, 30 count combed yarn was traded at ₹350-355 per kg (GST extra), 40 count combed at ₹380-385 per kg, 30 count carded at ₹300-305 per kg and 40 count carded at ₹330-335 per kg, as per Fibre2Fashion’s market insight tool TexPro. 

However, the Ludhiana market did not see any positive signs despite a steep fall in prices. A local trader told Fibre2Fashion, “Cotton yarn market remained under pressure because buyers were still absent from the market.” 

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 in the Panipat market were expecting buying to increase during the auspicious period of Navratri, but trading activities saw no improvement during the festival. Recycled PC yarn fell by ₹5 per kg, but other varieties were traded at the previous rates. The traders said that the buyers are not confident enough and the recycled yarn market may get a boost after the virgin cotton yarn market picks up. 

In Panipat, 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 ₹125-128 per kg. The yarn-waste product has seen relative stability due to lower supply. Recycled polyester fibre (PET bottle fibre) was steady at ₹88-90 per kg. 

North Indian cotton prices further eased by ₹200-250 per maund as arrival increased amid limited buying. Buyers including MNCs were very selective about new deals. According to the traders, they were waiting for the cotton prices to fall further to avoid losses. Daily arrival in north India comprising Punjab, Haryana, upper Rajasthan and lower Rajasthan increased to 14,000 bales of 170 kg. Cotton was traded at ₹6,900-6,950 per maund of 37.2 kg for September and early October delivery deals. Forward cotton for the full month of October was traded at ₹6,500-7,550 per maund for October delivery. 

Fibre2Fashion News Desk (KUL)