15 Jun '23
(Fibre2Fashion News Desk (KUL):
The cotton yarn trade in north India continues to witness a bearish trend as demand from both domestic and global markets remains stagnant. Market sentiments have been further affected by Cyclone Biparjoy, which brought normal life and production activities in the western states to a standstill. Traders anticipate that the fear incited by the cyclone will soon dissipate, but any improvement in the yarn market will depend on purchases from downstream industries.
INSIGHTS
Cotton yarn demand in north India continues to decline, causing prices to fall amid a bearish market.
Cyclone Biparjoy has further weakened market sentiments, especially in the western states.
In Ludhiana, cotton prices decreased by ₹3 per kg, but remained stable in Delhi despite poor demand.
Panipat noted weak sentiment for recycled yarn and raw materials.
The Ludhiana market has seen a decline in cotton yarn prices due to lower demand. Buying has further decreased as traders exercise caution with new purchases. A trader from the Ludhiana market told Fibre2Fashion, "Cotton yarn prices have dropped by ₹3 per kg. Mills and sellers are under pressure to offer lower prices as buyers have become more cautious. The cyclone in Gujarat has also disrupted market sentiments."
The Ludhiana market reported a decrease of ₹3 per kg compared to previous rates. The 30-count cotton combed yarn sold for ₹262-272 per kg (GST inclusive), while 20 and 25 count combed yarn traded at ₹252-257 per kg and ₹257-262 per kg respectively. The 30-count carded yarn was priced at ₹242-252 per kg, according to Fibre2Fashion's market insight tool TexPro.
However, the Delhi market reported stable cotton yarn prices. The demand for cotton yarn from exporters and the domestic industry remained weak. A Delhi market trader told F2F, "The market lacks support from the export market and domestic consumer industry.
Buyers are uncertain about the sale of their finished products." The 30-count combed yarn traded for ₹265-270 per kg (GST extra), the 40-count combed for ₹290-295 per kg, the 30-count carded for ₹237-242 per kg, and the 40-count carded for ₹267-270 per kg, as per TexPro.
The recycled yarn market in Panipat also remained quiet. Most counts and varieties of recycled yarn were traded at their previous prices.
Traders noted that yarn prices are at rock-bottom levels, leaving little room for spinners to further reduce prices. Mills remained pessimistic about demand increasing, even if prices were to drop further.
In Panipat, the 10s recycled PC yarn (grey) traded at ₹80-85 per kg (GST extra). Other varieties and counts included the 10s recycled PC yarn (black) 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. Comber prices hovered around ₹130-132 per kg. The price of recycled polyester fibre (PET bottle fibre) was ₹68-70 per kg.
North Indian cotton prices further declined as buyers showed no interest in fresh purchases. The market sentiment remained bearish due to weak buying from the garment industry. Traders reported limited arrivals, but spinning mills were uninterested in new purchases. Weak sentiment from ICE cotton and domestic cotton futures led to a downfall in spot cotton prices.
Today, the cotton arrival was 1,350-1,400 bales of 170 kg throughout north India. The natural fibre was traded at ₹5,775-5,875 per maund in Punjab, ₹5,725-5,825 per maund in Haryana, and ₹6,050-6,150 per maund of 37.2 kg in upper Rajasthan. It sold for ₹55,500-57,000 per candy of 356 kg in lower Rajasthan. (Source: Fibre2Fashion.com)