Foreign news on May 25th: Cotton yarn prices in northern India continue to face downward pressure due to slowing demand and low-price supply.
Cotton yarn prices fell in Ludhiana and remained basically stable in Delhi. Traders expressed uncertainty about a possible improvement in demand. To attract buyers, textile mills and traders are offering additional discounts.
Meanwhile, Panipat recycled yarn prices have stabilized. To avoid a further fall in yarn prices, a strategy necessary for existing losses, mills opted to reduce production levels.
Cotton yarn prices fell by Rs 1-2/kg in the Ludhiana market as negative sentiment dominated the market due to lack of buyers.
To avoid sales losses, cotton mills and traders are hesitant to cut prices. A trader in the Ludhiana market said: “The fall in cotton prices has further hit the already weak market sentiment. Textile mills have inventories, which are produced using cotton purchased at high prices. Traders are eager to trade in this uncertain market to protect your own funds.”
30 count combed yarn is priced at Rs 264-274 per kilogram (including GST). The price of 20-count and 25-count combed yarn is 254-259 rupees and 259-264 rupees per kilogram, and the 30-count carded yarn is 244-254 rupees per kilogram.
The price of cotton yarn in the Delhi market has basically remained stable, although the selling prices of a few varieties have dropped slightly. A trader in the Delhi market said: “In the current downturn in the market, everyone is trying to preserve their capital. However, traders and textile mills are unwilling to lower prices. The decline in cotton yarn prices has further aggravated the concerns of textile mills and traders.”
In Delhi, the transaction price of 30-count combed yarn was 260-270 rupees per kilogram (excluding consumption tax), and the 40-count combed yarn was 290-300 rupees per kilogram. The price of 30-count carded yarn is quoted at 238-245 rupees per kilogram, and the price of 40-count carded yarn is 268-275 rupees per kilogram.
Combed cotton prices have fallen sharply in the Panipat market due to reduced production of recycled yarn. However, most recycled yarns have maintained stable prices as mills have suffered yarn price losses of Rs 4-5 per kg.
The price of 30-count recycled polyester-cotton yarn fell by 3 rupees to 140-145 rupees per kilogram.
According to industry insiders, export demand for home products has dropped significantly, and domestic demand cannot support the home furnishing industry.
Cotton prices in northern India further fell by 100-125 rupees/moend due to lack of enthusiasm among textile mills in purchasing and weak global market sentiment. ICE cotton futures fell 2.5%, dragging down Indian cotton futures prices.
Traders said that the decline in ICE cotton futures, coupled with weak demand in the domestic textile value chain, led to the decline in cotton prices.
The arrival volume of cotton dropped to less than 5,000 bales (1 bale = 170 kg). Cotton prices are quoted at Rs 5,575-5,675 per morind in Punjab, 5,550-5,650 rupees per morind in Haryana, 5,950-6,050 rupees per morind in northern Rajasthan, and 54,500-56,000 rupees per kandi in southern Rajasthan. Indian cotton prices have fallen by about 10-12% in the past 10 days.
