Cotton yarn prices in Ludhiana declined by ₹5 per kg today despite an increase in cotton prices. Traders said that poor demand from end users is not offering any support to the textile value chain. However, cotton yarn prices remained stable in Delhi. Panipat’s recycled yarn market also faced poor demand as well as a scarcity of cotton comber.
Ludhiana market’s cotton yarn prices dropped as demand decreased again after a slight improvement in the last couple of days. Traders and stockists reduced prices to clear their stocks, while spinning mills did not. A trader from Ludhiana market told Fibre2Fashion, “Cotton yarn prices eased as traders and stockists were looking for ways to clear their stocks. Mills are already facing a disparity of ₹15 per kg. Cotton prices are rising so they were unwilling to reduce yarn prices. End-users’ poor demand is the main cause of worry. Higher cotton prices encouraged buyers for stocking, but current prices are not comfortable for the industry.”
In Ludhiana, 30 count cotton combed yarn was sold at ₹282-292 per kg (GST inclusive), 20 and 25 count combed yarn were traded at ₹272-282 per kg and ₹277-387 per kg, respectively, and Carded yarn of 30 count steadied at ₹257-267 per kg, according to Fibre2Fashion’s market insight tool TexPro.
In Delhi, cotton prices remained stable amid average demand. Traders were clueless about market direction during peak season. “The current price trend is very confusing. Cotton arrival should increase, and prices should come down. But contradictory trend is not good for the entire textile value chain. Buyers will not come to the market with full confidence,” a trader from Delhi market told Fibre2Fashion.
Trade sources feel demand will improve but it will fluctuate for adjustment. In the market, 30 count combed yarn was traded at ₹295-300 per kg (GST extra), 40 count combed at ₹325-330 per kg, 30 count carded at ₹275-280 per kg and 40 count carded at ₹310-315 per kg, as per TexPro.
Panipat recycled yarn market is facing double pressure. Poor demand for home textiles caused sluggish buying of recycled yarn. While recycled yarn manufacturers are facing a scarcity of cotton comber therefore, raw material is ruling high. Recycled yarn prices fell by ₹5 per kg due to sluggish demand. But Cotton comber gained ₹5-7 per kg as ring frame cotton yarn mills have not started production. Comber is a by-product of combed yarn. Traders feel that a scarcity of raw material will ease when cotton yarn production picks up in the new season.
In Panipat, 10s recycled yarn (white) was traded at ₹95-100 per kg (GST Extra). 10s recycled yarn (coloured – high quality) was traded at ₹105-110 per kg, 10s recycled yarn (coloured – low quality) at ₹80-85 per kg and 20s recycled PC coloured (high quality) at ₹110-115 per kg. 30 recycled PC coloured (high quality) at ₹150-155 per kg. 10s optical yarn was priced at ₹100-110 per kg in the market. Comber prices were ruling at ₹125-130 per kg. Recycled polyester fibre (PET bottle fibre) was at ₹85-87 per kg.
North India’s cotton prices further gained ₹50-100 per maund of 37.2 kg as arrival has not increased in comparison to the buying by millers. According to local traders, seed cotton was traded higher as arrival was limited. They are not bringing cotton as they expect prices will increase further. They are unwilling to sell at current prices. Cotton was traded at ₹6,500-6,600 in Punjab, ₹6,500-6,600 in Haryana and ₹6,600-6,700 per maund in upper Rajasthan, and at ₹64,000-65,000 per candy of 356 kg in lower Rajasthan. The arrival was noted at 19,000 bales of 170 kg in north Indian region.