North Indian cotton yarn holds firm amid rising export opportunities

28 Nov '24

4 min read

North Indian cotton yarn holds firm amid rising export opportunities

Pic: Adobe Stock

Insights

Cotton yarn prices in north India remained stable, supported by rising ICE cotton prices and improved export opportunities.
Domestic demand was average due to tight payment flows, but cooler temperatures boosted recycled yarn demand in Panipat.
Cotton prices increased slightly due to reduced arrivals and government procurement.
Ludhiana and Delhi saw steady prices with modest export prospects.

Cotton yarn prices in north India remained stable, but a recent rise in ICE cotton and the seasonal transition supported demand. The major markets of north India, including Delhi and Panipat, witnessed cotton yarn trade at previous price levels. Traders noted that ICE cotton has seen higher gains compared to the Indian market, improving price parity for cotton yarn exports. Mills are receiving better export orders for intermediary products. However, domestic demand remained average amidst tight payment flows. In Panipat, India’s home textile hub, there was slightly better demand for recycled yarn as temperatures dipped across several parts of north India. Despite this, prices did not show significant movement.

In the Ludhiana market, cotton yarn prices hovered at previous levels, with average demand observed. Limited payment flows were a negative factor for the trade, but the prospects of increased cotton yarn exports provided a positive outlook. A trader from the Ludhiana market told Fibre2Fashion, “Domestic demand is not very encouraging, but the recent rise in ICE cotton has improved price parity for cotton yarn exports from local spinners. Summer garment production is gradually picking up, which may boost cotton yarn demand.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹257-267 (approximately $3.05-3.16) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹247-257 (approximately $2.93-3.05) per kg and ₹252-262 (approximately $2.99-3.10) per kg, respectively; and carded yarn of 30 count was noted at ₹237-242 (approximately $2.81-2.87) per kg today, according to trade sources.

The Delhi market also saw stability in cotton yarn prices, with average demand from the downstream industry. Market sources reported that garment exports from north Indian states, especially Delhi NCR, remained slow. Exporters who previously sourced garments from Bangladesh have shifted more orders to south Indian exporters. Traders indicated that overall cotton yarn demand was sufficient to sustain current price levels.

In Delhi, 30 count combed knitting yarn was traded at ₹260-262 (approximately $3.08-3.10) per kg (GST extra), 40 count combed at ₹282-290 (approximately $3.34-3.44) per kg, 30 count carded at ₹237-239 (approximately $2.81-2.83) per kg, and 40 count carded at ₹262-265 (approximately $3.11-3.14) per kg today.

In Panipat, recycled yarn and cotton comber prices remained stable, though recycled polyester fibre saw a slight price increase due to higher raw material costs. Recycled polyester fibre gained ₹1-2 per kg over the past week, driven by a rise in PET bottle prices. Traders noted that a short supply of PET bottles, coupled with increased chip exports, has pushed fibre prices higher. However, recycled yarn prices showed no significant movement. While demand for home furnishings was slow, cooler temperatures boosted demand for blankets and jackets.

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 $1.54-1.60) per kg. Cotton comber prices were noted at ₹100-102 (approximately $1.18-1.21) per kg and recycled polyester fibre (PET bottle fibre) at ₹80-82 (approximately $0.95-0.97) per kg today.

Cotton prices in north India gained an additional ₹10-20 per maund of 37.2 kg due to rising ICE cotton prices and slow arrivals. A trader commented that stronger ICE cotton prices make domestic fibre more attractive for the textile industry. Government procurement also supported cotton prices. So far, north India has received approximately 7.5 lakh bales of 170 kg cotton this season, nearly half of the 15 lakh bales received during the same period last year. The reduced arrivals indicate a sharp decline in cotton production in the region.

Daily arrivals in north India dropped to 16,000 bales of 170 kg, with 700 bales in Punjab, 4,000 in Haryana, 5,000 in upper Rajasthan, and 6,300 in lower Rajasthan. In Punjab, cotton prices ranged from ₹5,680-5,690 (approximately $67.22-67.33) per maund of 37.2 kg. In Haryana, prices ranged from ₹5,670-5,680 (approximately $67.10-67.22). In upper Rajasthan, cotton was priced at ₹5,670-5,690 (approximately $67.10-67.33) per maund, while in lower Rajasthan, prices stood at ₹54,000-55,000 (approximately $639.04-650.88) per candy of 356 kg. Seed cotton prices ranged from ₹7,300-7,500 (approximately $86.39-91.12) per quintal of 100 kg.