North India cotton yarn prices slip, traders expect bounce back

Delhi market witnessed a decline in yarn prices today amid poor demand. Traders said that buyers remained sideways waiting for stability in prices. They expect that the market may take a U-turn very soon. A trader from Delhi market told Fibre2Fashion, “Cotton yarn prices came down to a quite lower level, which may attract buyers. Ultimately, domestic festivals and winter demand will hit the market. Recent gains in cotton price will support the entire value chain. Buyers will have to restock raw material as market pipeline is emptied.” It is certain that buyers will come back for bulk buying, but the crucial question is ‘when?’. Cotton yarn prices came down by ₹5 per kg. 30 count combed yarn was traded at ₹375-380 per kg (GST extra), 40 count combed at ₹415-420 per kg, 30 count carded at ₹335-340 per kg and 40 count carded at ₹370-375 per kg, as per Fibre2Fashion’s market insight tool TexPro.

North India’s yarn market continued to see downward trend. Cotton yarn prices further eased down by ₹5 per kg in Ludhiana and Delhi markets. But traders expect that the market will bottom out very soon and buyers in the entire value chain will comeback for restocking at lower and attractive prices. Higher cotton prices may also improve market sentiments.

Ludhiana market also noted a declining trend. Cotton yarn prices slipped by ₹5 per kg because buyers remained silent. Traders in this market see very dim possibilities for price improvement as they feel market is yet to stabilize after touching the bottom line. A local trader Gulshan Jain told Fibre2Fashion, “The market needs to wait more for better buying. Market pipeline is emptied, and buyers will come in a big way once the confidence is restored.” The downstream industry is buying just for immediate need. In Ludhiana, 30 count cotton combed yarn was sold at ₹380-385 per kg (GST inclusive), according to TexPro. 20 and 25 count combed yarn were traded at ₹370-375 per kg and ₹375-380 per kg respectively. Carded yarn of 30 count was quoted at ₹330-335 per kg.

Panipat market witnessed stable prices of recycled yarn. But recycled polyester fibre prices gained ₹1-2 per kg. Spinning mills are increasing consumption of recycled polyester fibre to control production cost. However, cotton comber was traded at previous level. A trader said that cotton yarn prices seem to have bottomed out. It may not witness steep fall further because buyers may come back at lower prices. In Panipat market, 10s recycled yarn (white) was traded at ₹88-93 per kg (excluding GST), 10s recycled yarn (coloured – high quality) at ₹105-110 per kg, 10s recycled yarn (coloured – low quality) at ₹80-85 per kg and 20s recycled high quality PC yarn (coloured) at ₹120-125 per kg. 30 count recycled yarn was sold at ₹160-165 per kg. 10s optical yarn was traded at ₹100-110 per kg in the market. Comber prices were ruling at ₹130-135 per kg. The price of recycled polyester fibre (PET bottle fibre) was noted at ₹90-92 per kg.

Meanwhile, cotton prices continued to show upward trend in north India due to better buying amid limited arrival. Most arrival was recorded in Haryana mandis. Punjab also saw arrival of few lots of new cotton. New cotton was traded at ₹9,200-9,250 per maund of 37.2 kg for spot deals, which are still very limited in the region. Forward deals are common in north India. Forward cotton was traded at ₹8,650-8,700 per maund for September and ₹8,000-8,050 per maund for October delivery.

Fibre2Fashion News Desk (KUL)