Cotton yarn prices witnessed mixed trend in north India recently because of weaker demand and production cut by spinning mills. Cotton yarn prices gained in Ludhiana as traders and mills were quoting higher after reports of production cut and costlier cotton. But Delhi market noted steady trend. Prices of higher counts of recycled yarn eased in Panipat market.
Cotton yarn prices increased further in Ludhiana market because of reports of production cut by mills. A local trader Gulshan Jain told, “Ninety percent mills are closed in Gujarat. North India’s mills have shifted to polyester-cotton and poly spun yarn. Some mills have turned to finer counts to reduce cotton consumption. Mills are facing higher disparity in production of cotton yarn.” According to the traders, demand from downstream remained average. Yarn traders do not expect much support from buyers in the current scenario. In Ludhiana, 30 count cotton combed yarn was sold at Rs. 385-390 per kg (GST inclusive) with gain of Rs. 3 per kg, according to market insight tool TexPro. 20 and 25 count combed yarn was traded at Rs. 375-380 per kg and Rs. 380-385 per kg respectively. Carded yarn of 30 count was quoted at Rs. 340-345 per kg.
Delhi market witnessed steady trend as demand again reduced to hand-to-mouth. Traders and mills were trying to increase yarn prices, but market was not supportive. A trader from Delhi said that export demand has again reduced, and buyers were buying just for immediate consumption. Local demand was also scanty. 30 count combed yarn was traded at Rs. 375-380 per kg (GST extra), 40 count combed at Rs. 415-420 per kg, 30 count carded at Rs. 340-345 per kg and 40 count carded at Rs. 375-380 per kg, as per TexPro.
There were weaker sentiments in trade of recycled yarn in Panipat. The prices of recycled yarn of higher count declined by up to Rs. 10 per kg from earlier. According to trade sources, there were indications of better buying during last week, but buyers backtracked after increase in yarn prices. In Panipat market, the price of 30 count recycled yarn lowered by Rs. 10 to Rs. 160-165 per kg (excluding GST). Earlier, the prices gained but it could not sustain due to poor buying. The price of 20 count recycled yarn also eased by Rs. 5 per kg, but other counts and varieties remained stable. 10s recycled yarn (white) was traded at Rs. 90-95 per kg (excluding GST), 10s recycled yarn (coloured – high quality) at Rs. 110-115 per kg, 10s recycled yarn (coloured – low quality) at Rs. 80-85 per kg, and 20s recycled high quality PC yarn (coloured) at Rs. 120-125 per kg. 10s optical yarn was traded at Rs. 100-110 per kg in the market. Comber prices were ruling at Rs. 140-148 per kg. The price of recycled polyester fibre (PET bottle fibre) was noted at Rs. 92 per kg.
Meanwhile, north India cotton prices were under pressure after reports of shutting yarn production by spinning mills. However, cotton prices had witnessed upward trend in last week. According to the traders, trade was very thin because of lower demand and availability. Cotton was traded at Rs. 10,300-10,500 per maund of 37.2 kg in Punjab, Rs. 10,000-10,200 per maund in Haryana and Rs. 10,300-10,500 per maund in upper Rajasthan. Cotton was sold at Rs. 96,000-98,000 per candy of 356 kg in lower Rajasthan.