Garment import from China worries North Indian yarn market; falling rate

The North India cotton yarn market saw a mixed trend today. Prices remained stable in Delhi, while Ludhiana noted a drop of ₹5 per kg due to imports of cheaper cotton garments in India. Trade sources said the cotton yarn market is not getting any support despite an improvement in cotton prices. However, mills are making efforts to raise yarn prices.

Cotton yarn prices have fallen in Ludhiana as the market worries about the import of cheaper cotton garments from China which could impact India’s entire textile value chain . It is important to note that cotton and cotton yarn prices recorded a sharp decline in China after the United States imposed a ban on cotton originating from the Xinjiang region. “The volume of imports remains to be determined. But the initial report on Chinese imports is worrying for the domestic market and the industry as a whole. The Indian government must act quickly to protect domestic industry, commerce and farmers,” said a trader at Ludhiana Market. Fibre2Fashion.

The North India cotton yarn market saw a mixed trend today. Prices remained stable in Delhi, while Ludhiana noted a drop of ₹5 per kg due to imports of cheaper cotton garments in India. Trade sources said the cotton yarn market is not getting any support despite an improvement in cotton prices. However, mills are making efforts to raise yarn prices.

In Ludhiana market, cotton yarn fell by ₹5 per kg. 30 thread count cotton combed yarn used to be sold at ₹310-320 per kg (including GST), according to Fibre2Fashion’s market analysis tool, TexPro. 20 and 25 point worsted yarns were traded at ₹295-305 per kg and ₹300-310 per kg respectively. 30 thread carded yarn was quoted at ₹265-275 per kg.

In Delhi, cotton yarn prices remained stable amid weak demand, while cotton prices improved due to a lower production estimate. According to a trader in Delhi, mills are trying to raise cotton yarn prices, but buyers are unwilling to pay more. In the Delhi market, 30 yarn worsted was traded at ₹310-315 per kg (GST extra), 40 yarn worsted at ₹345-350 per kg, 30 yarn carded at ₹280-285 per kg and 40 yarn carded at ₹315-320 per kg, depending TexPro.

The prices of recycled yarns remained stable on the Panipat market. It is mainly used in home furnishings and to make coarse fabrics. Demand for recycled yarn has yet to pick up as there was no activity on the export front. Exporters are struggling to secure new orders due to the economic slowdown in overseas markets. The ban on coal-based dyeing units in Panipat has been relaxed until the end of December this year, so the supply of recycled yarn has remained stable in the market.

In Panipat, 10s recycled yarn (white) was trading at ₹86-92 per kg (excl. GST) after a decline of ₹1-2 per kg. But 10s recycled yarn (colored – high quality) stabilized at ₹100-105 per kg, 10s recycled yarn (colored – low quality) sold at ₹80-85 per kg and recycled PC yarn at high 20s grade (colored) at ₹105-110 per kg. Recycled 30 thread yarn was sold at ₹155-160 per kg and 10s optical yarn was traded at ₹100-110 per kg. Comber prices reigned at ₹120-125 per kg and the same declined to ₹115-120 per kg in South India. Recycled polyester fiber (PET bottle fiber) was at ₹88-90 per kg.

Cotton prices in northern India increased due to low crop estimate and cloudy weather. North India’s cotton production estimate for the new marketing season 2022-23 (October-September) has been lowered by around 10 lakh bales from 170 kg to 51 lakh bales by the Indian Cotton Association Ltd (ICAL) based in Bathinda. The region includes Punjab, Haryana, Upper Rajasthan and Lower Rajasthan. The daily arrival in North India has decreased to 10,000-11,000 bales. Cotton was traded between ₹7,200 and ₹7,250 per 37.2 kg maund for ready trade. Prices have gained ₹75 per maund since last Friday.

Fibre2Fashion (KUL) News Desk

Michael O. Stutler