Foreign news reported on August 24 that the purchase of polyester-cotton yarn and core-spun yarn in northern India has slowed down due to rising prices and limited demand for fabrics. After the price increase of cotton and cotton yarn last week, the price of non-cotton yarn increased by Rs 5-8 per kg. Recycled polyester fiber, however, is supported by growing demand as textile mills focus on cheaper raw materials to control production costs.
According to trade sources, many factories have reduced yarn production and demand remains poor. The price increase last week also suppressed the buying demand of polyester-cotton yarn and core-spun yarn. A trader in Ludhiana said, “The textile industry is not in a hurry to buy. This shows that they have enough stocks to meet the limited demand of the apparel industry.” However, recycled polyester fiber is in a better position because its economics make Attractiveness increases.
In the Ludhiana market, the prices of polyester-cotton yarn and core-spun yarn increased compared with the previous week. But demand has weakened since the start of the week. Since the middle of last week, the price of polyester-cotton yarn has increased by 5-10 rupees per kilogram. Rising cotton prices last week pushed up the prices of cotton yarn and polyester-cotton yarn. However, demand for polyester-cotton yarn and core-spun yarn weakened as the textile industry reduced purchases following slowdown in demand for fabrics from the apparel industry. The price of recycled polyester fiber has also increased by Rs 2 per kg as the textile industry switches to cheaper options to control production costs.
At the same time, cotton prices in northern India fell as textile mills reduced purchases after production cuts. Textile mills have reduced or suspended production due to poor demand in the textile industry and rising cotton prices last week. According to traders, cotton arrivals are almost negligible, but demand remains weak. Therefore, the price of cotton per morund (37.2 kg) fell by 400-500 rupees. In Punjab, cotton is sold at Rs 10,000-10,100 per maund, Haryana at Rs 9,500-9,800 per maund and Jasthan at Rs 10,000-10,100 per maund. In Rajasthan, cotton is sold at Rs 94,000-97,000 per kandi (356 kg).
