Foreign news on November 10, cotton yarn prices in Ludhiana, India fell by 5 rupees per kilogram on Thursday, despite the increase in cotton prices. Traders said poor end-user demand did not provide any support to the textile value chain.
Cotton yarn prices, however, remained stable in Delhi.
The Panipat recycled yarn market is also facing the problem of insufficient demand and shortage of cotton combers.
Cotton yarn prices fell in Ludhiana as demand fell again after improving slightly in the past few days.
Traders and stockists lowered prices to clear stocks, but spinners did not.
A trader from Ludhiana market said: “Cotton yarn prices have fallen as traders and stockists are looking for ways to clear their inventories. Textile mills are already facing Rs 15 per kg difference. Cotton prices are rising so they are not willing to reduce yarn prices. Lack of end-user demand is the main reason for concern. Rising cotton prices have encouraged buyers to stock up but current prices are not comfortable for the cotton industry .”
In Ludhiana, 30-count combed cotton yarn is sold at Rs 282-292 per kilogram (including GST); 20 and 25-count combed cotton yarn is priced at Rs 282-292 per kilogram (including GST); kg 272-282 rupees and 277-387 rupees. 30 count woolen yarn is stable at 257-267 rupees per kilogram.
Cotton prices remain stable amid moderate demand in Delhi.
Traders have no idea where the market is going during the peak season.
A trader in the New Delhi market said: “The current price trend is very confusing. The purchase volume of cotton should increase and the price should fall. But the contradictory trend has a negative impact on the value of the entire textile industry. The chain is unfavorable. Buyers will not come to the market with confidence.”
Traders believe that demand will improve but will fluctuate due to adjustments.
In Delhi, 30-count combed yarn is trading at Rs 295-300 per kilogram, 40-count combed yarn is trading at Rs 325-330 per kilogram, and 30-count carded yarn is trading at Rs. 275-280 rupees per kilogram, 40-count carded yarn 310-315 rupees per kilogram.
Panipat recycled yarn faces double pressure. Sluggish demand for home textiles has led to sluggish purchases of recycled yarn. Recycled yarn manufacturers are facing scarcity of cotton combers and hence raw material dominates.
Recycled yarn prices fell by Rs 5 per kg due to sluggish demand. Traders believe that when cotton yarn production picks up in the new quarter, the shortage of raw materials will be alleviated.
Cotton prices in northern India continued to rise by 50-100 rupees per morund (37.2 kg) as the arrival volume did not increase compared with textile mill buying.
Seed cotton trading was higher due to limited arrivals, according to local traders. They are unwilling to sell at the current price.
Cotton is quoted at 6500-6600 rupees per kandi (356 kg) in Punjab, 6500-6600 rupees in Haryana, and 6600-6600 rupees in upper Rajasthan. 6700 rupees, 6400-6500 rupees in lower Rajasthan.
The arrival volume of cotton from northern India is 19,000 bales (170 kg).
