Fibres and Yarns

Polyester price drop fuels north India’s cotton yarn price decline

Published: May 25, 2023
Author: DIGITAL MEDIA EXECUTIVE

Due to declining demand, cotton yarn prices in north India keep declining. Cotton’s value chain has also been pushed down by cheaper polyester fibre and its raw components. Cotton yarn costs in the Ludhiana market dropped by five rupees per kilogramme, showing a weak demand that was also present in the Delhi market. Prices for cotton yarn, however, generally stayed the same. In Panipat, the market for recycled yarn remained stable despite a slow demand caused by weak exports of home furnishings.

Cotton yarn prices fell by $5 per kg in the Ludhiana market, showing a downward trend. A decline in cotton prices has impacted market conditions. “The demand from the weaving industry and exporters has yet to improve,” a merchant from the Ludhiana market told. Lower discounts are being offered by mills who are experiencing a liquidity crisis. Additionally, retailers and stockists are offering cotton yarn at lower costs.

The price of 30 count cotton combed yarn in Ludhiana ranged from $265 to $275 per kg (GST included), whereas the prices for 20 and 25 count combed yarn were 255 to 260 and $265 to $265 per kg, respectively. Carded yarn with a 30 count was priced between $245 and $255 per kg. Last week, the market saw a reduction in the cost of cotton yarn.Even if the demand from the weaving sector hasn’t improved, the Delhi market showed stability in cotton yarn pricing. Slower exports were the market’s biggest concern, according to a trader from the Delhi market. Cotton demand dropped as a result of the recent decline in polyester pricing. production facilities in cotton is less appealing since the textile value chain has not found it to be profitable.

According to TexPro, in Delhi, 30 count carded yarn sold for between 238 and 245 rupees per kilogramme and 40 count carded yarn for between 268 and 275 rupees per kilogramme (GST additional).

Manufacturers of home furnishings products have seen a dip in demand, which has also affected the recycled yarn industry in Panipat. Trade sources claim that there was a sharp fall in demand for these goods following COVID-19 and no immediate signs of improvement. Grey 10s recycled PC yarn went for between $80 and $85 per kg (including GST), whereas black 10s recycled PC yarn traded for between $50 and $55 per kg. Grey 20s recycled PC yarn cost between $95 and $100 per kg, and 30s recycled PCyarn (grey) at ₹140-150 per kg. Comber prices were registered at ₹130-132 per kg. Recycled polyester fibre, derived from PET bottles, was noted at ₹69-70 per kg.
North Indian cotton prices have been hit by weak demand from spinners. Traders said that despite lower arrivals, the demand for cotton from spinners and exporters remains unimproved. The recent decline in polyester fibre and its raw materials has further diminished cotton’s appeal. As the price gap between natural and man-made fibre widens, polyester becomes more viable. Cotton arrival was noted at 5,000 bales of 170 kg each. Cotton was traded at Rs.5,875-5,975 per maund in Punjab, Rs.5,850-5,950 per maund in Haryana, and Rs.6,150-6,250 per maund in upper Rajasthan and Rs.56,000-58,000 per candy of 356 kg in lower Rajasthan.

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