Cotton Yarn Stable in North India Despite Concerns Over Export Demand

North India cotton yarn market started with stable demand and prices. The weak demand in the first half of 2023 is due to high inflation and rising interest rates in many countries around the world. Cotton yarn prices have remained flat in Ludhiana, Delhi and Panipat markets. Traders have noted that the yarn market will only improve once global demand increases. So far there are no positive indicators from the downstream market and both stockists and ginners are struggling to keep yarn prices stable.

The Ludhiana market has seen a steady trend in cotton yarn prices with average demand. There was no improvement in purchasing in the consumer goods industry and among exporters. A trader from Ludhiana market said, “The market has not seen any positive signals from the buy front. The prices for cotton yarns developed steadily. The mills weren’t interested in attracting buyers with lower prices as they didn’t want to put pressure on their margins.”

The 30-count combed cotton yarn sold for ₹262–272 per kg (including VAT) and the 20-count and 25-count combed yarn were traded for ₹252–257 per kg and ₹257–262 per kg, respectively. The carded yarn of yarn count 30 had a value of 242-252 ₹ per kg.

The Delhi market also saw a stable trend in cotton yarn prices. Purchasing from exporters and domestic industry remained average. A trader from the Delhi market said: “The market noted a stable trend in demand and prices for cotton yarn.”

In Delhi, the 30-ply combed yarn traded for ₹265–270 per kg (GST extra), the 40-ply combed yarn for ₹290–295 per kg and the 30-ply carded yarn for ₹237–242 per kg40 -count card for ₹267-270 per kg.

Silence also reigned in the recycled yarn market in Panipat. Spinners didn’t increase sales by lowering prices. One trader said demand was weak and lower prices weren’t attracting buyers. In Panipat, 10s recycled PC yarn (grey) was traded at ₹80–85 per kg (GST extra). Other grades and counts were 10s recycled PC yarn (black) at ₹50–55 per kg, 20s recycled PC yarn (grey) at ₹95–100 per kg, and 30s recycled PC yarn (grey) at ₹140–145 per kg . The prices for combers ranged from ₹130 to ₹132 per kg. Recycled polyester fiber (PET bottle fibre) has been reported as ₹68–70 per kg.

Cotton prices in North India started stable. Cotton availability was severely limited due to low end-of-season arrivals. Traders expect a further decline in cotton trade due to a lack of supply. Nonetheless, ginners will continue to sell cotton from their inventory. Currently, concerns in the cotton trade are centered on reduced demand in export markets.

Today, between 1,350 and 1,400 bales of 170 kg of cotton have arrived across northern India. The price was ₹5,850–5,950 per maund of 37.2 kg in Punjab, ₹5,650–5,750 per maund in Haryana and ₹6,000–6,100 per maund in Upper Rajasthan and for ₹55,000–56,500 per candy of 356 kg in Lower Rajasthan.

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