Foreign news reported on June 29 that cotton yarn prices in northern India were stable. Cotton yarn prices in Delhi and Ludhiana are at previous levels, and cotton spinning mills continue to quote based on previous prices and are unwilling to sell at lower prices. Although cotton prices have fallen in the past two weeks, resulting in lower production costs, cotton yarn prices have remained stable. This stability may suggest that cotton mills have sufficient financial buffers to maintain current cash flow. Traders hinted that demand increased slightly as lower inventories prompted buyers to take action.
Cotton yarn prices remain stable in Ludhiana. Cotton spinning mills and stockists have always wanted to sell goods at the current price level and have no intention of selling at lower prices. A trader in Ludhiana said there is no pressure on cotton mills to sell at low prices. Their capital flow is controllable, so they don’t have to cut prices. However, as cotton prices decline, cotton mills have some room to reduce prices.
30 count combed yarn is priced at Rs 260-270 per kg (including GST). The price of 20-count and 25-count combed yarn is 250-255 rupees per kilogram and 255-260 rupees per kilogram, and the 30-count carded yarn is priced at 240-250 rupees per kilogram.
Cotton yarn prices in Delhi also remained stable. Falling inventories have brought some buying demand. A trader in Delhi said consumer companies and stockists have depleted their stocks after bleak retail demand led to a slowdown in purchasing. The current price of cotton yarn is low and also very attractive. Increased demand is good for market sentiment.
30 count combed yarn is priced at Rs 260-265 per kg (excluding GST). The price of 40-count combed yarn is 285-290 rupees per kilogram, 30-count carded yarn is 232-237 rupees per kilogram, and 40-count carded yarn is 262-267 rupees per kilogram.
The prices of recycled yarn and raw materials such as cotton and recycled polyester fiber remain stable, and demand is weak. Buyers are still cautious when placing orders. Traders and consumer companies are not very enthusiastic about building inventories. They tend to buy and use as they go.
In Panipat, 10s recycled polyester-cotton yarn (grey) was traded at Rs 77-82 per kg (GST paid). 10s recycled polyester-cotton yarn (black) is priced at 48-52 rupees per kilogram, 20s recycled polyester-cotton yarn (grey) is 92-97 rupees per kilogram, and 30s recycled polyester-cotton yarn (grey) is priced at 135-140 U.S. dollars per kilogram. Cotton prices are hovering at Rs 120-122 per kg and recycled polyester fiber (PET bottle fiber) at Rs 69-72 per kg.
Due to limited supply and demand, cotton prices in North India have basically remained stable. The arrival volume of cotton dropped to less than 1,000 bales (1 bale = 170 kilograms). Meanwhile, procurement by cotton ginners has been slow due to poor demand from the textile industry. The trading price of natural cotton is 5700-5800 rupees per morind in Punjab, 5450-5550 rupees per morind in Haryana, 5800-5900 rupees per morind in upper Rajasthan (1 morind = 37.2 kg), and 5800-5900 rupees per morind in upper Rajasthan (1 morind = 37.2 kg). Rs 53,700-55,500 per kandy (1 kandy = 356 kg).
