25 May '23
(Fibre2Fashion News Desk (KUL): Cotton yarn prices in north India continue to face downward pressure due to slow demand and the availability of cheap fibre. The cost of cotton yarn dropped In Ludhiana, while Delhi mostly maintained stable cotton yarn prices.
Traders expressed uncertainty concerning potential improvement in demand. To entice buyers, both mills and traders are offering additional discounts.
Meanwhile, the Panipat market shows stability in recycled yarn prices. In an attempt to avoid further price drops in yarn—a strategy necessitated by existing losses—mills have chosen to reduce production levels instead.
North Indian cotton prices have decreased due to slow demand and cheaper fibre alternatives.
Mills and traders in Ludhiana and Delhi offer discounts in the face of uncertain market trends.
Panipat's market shows resilience in recycled yarn prices despite a drop in cotton comber prices.
Traders and mills are reducing production levels to mitigate losses.
The Ludhiana market reported a decrease of ₹1-2 per kg in cotton yarn prices, with bearish sentiments prevailing due to the absence of buyers. Mills and traders, keen to avoid a loss in sales, were hesitant to offer lower prices. A trader from the Ludhiana market told Fibre2Fashion, "The decline in cotton prices has further dampened the already weak market sentiments. Mills have an inventory of yarn produced from cotton purchased at significantly high prices. Traders are eager to protect their capital in this uncertain market."
According to the market insight tool TexPro from Fibre2Fashion, 30 count cotton combed yarn was sold at ₹264-274 per kg (GST included). Meanwhile, 20 and 25 count combed yarn traded at ₹254-259 per kg and ₹259-264 per kg, respectively. The price for carded yarn of 30 count was recorded at ₹244-254 per kg.
The Delhi market observed a mostly steady trend in cotton yarn prices, though a few counts and varieties were sold at slightly lower rates.
A trader from the Delhi market told F2F, "In the current sluggish market, everyone is attempting to preserve their capital. However, both traders and mills are refraining from offering lower prices. The decrease in cotton yarn prices has further compounded worries for mills and traders."
In Delhi, 30 count combed yarn traded at ₹260-270 per kg (GST excluded), 40 count combed at ₹290-300 per kg, 30 count carded at ₹238-245 per kg, and 40 count carded at ₹268-275 per kg, according to TexPro.
The Panipat market saw a significant drop in the price of cotton comber due to reduced production of recycled yarn. However, most varieties and counts of recycled yarn maintained steady prices as mills were already suffering a loss of ₹4-5 per kg in yarn prices.
Yet, 30 count recycled PC yarn dropped by ₹3 to ₹140-145 per kg. In the past 10 days, cotton comber prices have decreased by ₹10 per kg.
According to trade sources, the export demand for home furnishing products has plummeted drastically, with domestic demand also failing to sustain the home furnishing industry.
The 10s recycled PC yarn (grey) traded at ₹80-85 per kg (GST excluded) in the Panipat market. Meanwhile, the 10s recycled PC yarn (black) was sold at ₹50-55 per kg, the 20s recycled PC yarn (grey) at ₹95-100 per kg, and the 30s recycled PC yarn (grey) at ₹140-145 per kg. Over the last week, comber prices fell by ₹10 per kg, trading today at ₹120-122 per kg. Recycled polyester fibre (made from PET bottles) was marked at ₹70-72 per kg.
Cotton prices in north India have further decreased by ₹100-125 per maund due to lackluster purchases from mills and weak sentiments from the global market. ICE cotton has witnessed a drop of 2.5 per cent, which has contributed to the easing of domestic cotton futures. Traders have stated that the decline in ICE cotton prices, coupled with poor demand in the domestic textile value chain, has led to a fall in the price of cotton. Arrivals have dipped below 5,000 bales of 170 kg each.
Cotton was traded at ₹5,575-5,675 per maund in Punjab, ₹5,550-5,650 per maund in Haryana, and ₹5,950-6,050 per maund in upper Rajasthan; and at ₹54,500-56,000 per candy (a unit of 356 kg) in lower Rajasthan. Over the past ten days, cotton prices have dropped around 10-12 per cent.