The cotton yarn market in north India continued to be bearish today, as cotton yarn prices remained stagnant and demand from the downstream industry was weak. The Ludhiana market is facing a payment crisis, while the Delhi market is witnessing limited trade due to poor buying. In the Panipat market, the recycled yarn market is experiencing a decline of Rs. 8-10 per kg in cotton comber.
The Ludhiana market is currently facing a financial crisis due to payment delays from brands and corporates, resulting in slower demand for cotton yarn. Trade sources indicate that weak demand is due to several reasons. Brands and corporates are delaying lifting their stocks and payments, resulting in a significant backlog of garment products with manufacturers. The value of these stocks is estimated at over Rs. 1,000 cr. A trader from Ludhiana told, “Cash flow has dried up. Brands and corporates are not making payments to their suppliers and a few companies are also demanding an additional discount of 5 per cent of the value. Therefore, many manufacturers are seriously thinking of developing their own brands to sell garments at lower prices instead of supplying to big brands.” The current scenario is affecting the yarn market.
Currently, 30 count cotton combed yarn is being sold at Rs. 277-287 per kg (GST inclusive), while 20 and 25 count combed yarns are being traded at Rs. 267-277 per kg and Rs. 270-280 per kg, respectively. Carded yarn of 30 count is noted at Rs. 255-265 per kg, according to market report.
The Delhi market also saw stable cotton yarn prices with a similar trend of lower demand. Traders mentioned that the demand from the downstream industry was not encouraging, and mills and stockists were striving to maintain prices at current levels. As per market report, 30 count combed yarn was traded at Rs. 280-285 per kg (excluding GST), 40 count combed at Rs. 305-310 per kg, 30 count carded at Rs. 255-260 per kg, and 40 count carded at Rs. 285-290 per kg.
The recycled yarn market in Panipat experienced a decline in cotton comber prices by Rs. 8-10 per kg due to slower buying from the home furnishing industry. Trade sources attributed this to the high cost of cotton comber, which made the manufacturing of many home furnishing products unviable. Slower demand from the downstream industry led to ease in prices, but recycled yarn prices remained stable. In this market, 10s recycled PC yarn (grey) was traded at Rs. 85-90 per kg (excluding GST), 10s recycled PC yarn (black) was traded at Rs. 60-65 per kg, 20s recycled PC yarn (grey) at Rs. 95-100 per kg, and 30s recycled PC yarn (grey) at Rs. 150-155 per kg. Comber prices were noted at Rs. 140-145 per kg and recycled polyester fibre (PET bottle fibre) was noted at Rs. 78-80 per kg.
Today, the prices of North Indian cotton continued to decline due to the bearish tone in future trading and slow demand from spinners. The cotton prices eased further by Rs. 20-25 per maund (37.2 kg). The arrival of cotton was limited to 5,500 bales of 170 kg due to farmers being occupied with the harvesting and selling of the wheat crop. Cotton was traded at Rs. 6,200-6,300 per maund in Punjab, Rs. 6,180-6,280 per maund in Haryana, and Rs. 6,375-6,475 per maund in upper Rajasthan, and at Rs. 60,000-61,500 per candy (356 kg) in lower Rajasthan.
