Cotton yarn prices remain stable in north India, payment still problem

Cotton yarn prices were stable in north Indian markets of Delhi and Ludhiana today because demand remained average. There was no support for price rise in yarn markets, which are still facing tight liquidity. The recycled yarn market in Panipat also noted stable prices. However, the market hopes that better buying will prevail in next few weeks.

Delhi market witnessed steady trend as enough demand was absent for support of yarn prices. Traders admitted that demand was average in north India’s states like Uttar Pradesh, Haryana, Rajasthan and Delhi. A trader from Delhi told Fibre2Fashion, “Poor export demand dampened market sentiments. However, local demand is better. improved retail buying is expected by end-users from next month.” 30 count combed yarn was traded at ₹370-375 per kg (GST extra), 40 count combed at ₹405-410 per kg, 30 count carded at ₹320-325 per kg and 40 count carded at ₹360-365 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Cotton yarn prices were stable in north Indian markets of Delhi and Ludhiana today because demand remained average. There was no support for price rise in yarn markets, which are still facing tight liquidity. The recycled yarn market in Panipat also noted stable prices. However, the market hopes that better buying will prevail in next few weeks.

Cotton yarn prices remained unchanged in Ludhiana market amid limited buying. Liquidity problem is still visible. According to the traders, further months can bring better buying in the entire textile value chain. Current buying might not be so encouraging but it will improve in further fortnight. In Ludhiana, 30 count cotton combed yarn was sold at ₹370-375 per kg (GST inclusive), as per TexPro. 20 and 25 count combed yarn were traded at ₹360-365 per kg and ₹365-370 per kg respectively. Carded yarn of 30 count was quoted at ₹330-335 per kg.

There was no significant movement in prices of recycled yarn in Panipat as demand remained very limited. According to the traders, buyers are still waiting for reliable signals of higher buying in downstream industries. Recycled yarn is mainly used in furnishing products like curtain, pillow cover, bed sheets, quilt, sofa cover, etc. Traders said that there was slightly better buying of some counts. In Panipat market, 10s recycled yarn (white) was traded at ₹90-95 per kg (excluding GST), 10s recycled yarn (coloured – high quality) at ₹110-115 per kg, 10s recycled yarn (coloured – low quality) at ₹80-85 per kg and 20s recycled high quality PC yarn (coloured) at ₹125-130 per kg. 10s optical yarn was traded at ₹100-110 per kg in the market. Comber prices were noted at ₹122-127 per kg. Recycled polyester fibre (PET bottle fibre) was sold at ₹90 per kg.

Meanwhile, cotton prices further gained in north India on negligible arrival. According to traders, limited trade took place by ginners and stockists. Some traders feel that cotton prices may increase one again to ₹1 lakh per candy of 356 kg. But yarn traders said that spinners cannot afford such high prices. They are consuming their stocks. If they do not have enough stocks, mills will prefer to halt production instead of purchasing at so high prices. Cotton was traded at ₹9,500-9,800 per maund of 37.2 kg in Punjab, ₹8,800-9,500 per maund in Haryana and ₹9,400-9,800 per maund in upper Rajasthan. The cotton was sold at ₹88,000-90,000 per candy in lower Rajasthan.

Fibre2Fashion News Desk (KUL)