The cotton market in North India continues to face pressure due to lower demand from the downstream industry. Major cotton yarn markets like Mumbai and Ludhiana have reported a gradual easing of prices. Traders expect the demand to increase next month. Sentiments in India’s largest home furnishing hub Panipat are also weak. The decline in export demand, which has fallen to around 60 percent compared to the same period last year, is a major concern.
Cotton yarn prices have decreased by Rs. 2 per kg in the Ludhiana market due to weak demand. “The market may face sluggish demand till the first week of the next month, but the demand will improve from the downstream industry in the next fortnight. Usually, buying improves in the first month of the new fiscal,” a trader from Ludhiana market told.
In Ludhiana, 30 count cotton combed yarn was sold at Rs. 278-288 per kg (inclusive of GST), while 20 and 25 count combed yarn were traded at Rs. 268-278 per kg and Rs. 273-283 per kg, respectively. Carded yarn of 30 count was noted at Rs. 257-267 per kg, according to market report.
Similarly, in Delhi, cotton yarn prices have been easing gradually since the beginning of the month, with muted demand recorded as buyers remained silent in the last week of March. A trader from Delhi told, “Cotton yarn prices eased gradually as demand remained poor.” According to market report, 30 count combed yarn was traded at Rs. 275-280 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 is experiencing a steady trend in prices, although demand is weaker. “The current weak sentiments can be attributed to poor demand from the export market. The export demand of home furnishing from Panipat reduced by 60 percent from last year. Mere 40 percent export demand was unable to support the recycled yarn market,” Peetam S Sachdeva, a prominent businessman in recycled yarn, told.
In Panipat, 10s recycled PC yarn (grey) was traded at Rs. 88-92 per kg (GST extra); 10s recycled PC yarn (black) was traded at Rs. 60-65 per kg; 20s recycled PC yarn (grey) at Rs. 100-105 per kg and 30s recycled PC yarn (grey) at Rs. 150-155 per kg. Comber prices were noted at Rs. 140-142 per kg and recycled polyester fibre (PET bottle fibre) was noted at Rs. 73-75 per kg.
North India’s cotton prices have fallen by Rs. 80-100 per maund of 37.2 kg due to a price fall in ICE cotton and poor demand from spinners in the last days of the current fiscal. The decline in ICE cotton futures has driven spot prices down, and buyers have been absent from the market due to March closing. Cotton arrival in North India is also on the lower side, with only 10,000 bales of 170 kg noted. The arrival is likely to shrink further as the season is about to end. Cotton was traded at Rs. 6,000-6,100 per maund in Punjab and Haryana, and Rs. 6,200-6,300 per maund in upper Rajasthan, and at Rs. 57,500-59,500 per candy of 356 kg in lower Rajasthan.
