According to foreign news on July 14, the cotton yarn market in northern North India is still bearish, with Ludhiana dropping 3 rupees per kilogram, but Delhi remains stable. Trade sources indicate that manufacturing demand remains sluggish.
Rainfall may also hinder production activities in the northern states of India. However, there are reports that Chinese importers have placed orders with several spinning mills. Some traders believe that the market may respond to these trade trends. The price of Panipat combed cotton has fallen, but the recycled cotton yarn remains at its previous level.
Ludhiana cotton yarn prices fell by Rs 3 per kg. Downstream industry demand remains sluggish. But in the coming days, cotton yarn export orders from China may provide support.
Gulshan Jain, a trader in Ludhiana, said: “There is news about the export orders of Chinese cotton yarn in the market. Several factories have tried to obtain orders from Chinese buyers. Their purchase of cotton yarn coincides with the rise of cotton prices in the Intercontinental Exchange (ICE).”
Delhi cotton yarn prices remain stable. Due to poor domestic industry demand, market sentiment is weak. A trader in Delhi said: “Affected by rainfall, the activities of manufacturing and garment industries in northern India may be affected. As the nearby drainage system was flooded, some areas in Ludhiana were forced to close, and there were several local printing and dyeing plants. This may have a negative impact on market sentiment, because the manufacturing industry may further slow down after the interruption of the reprocessing industry.”
The price of Panipat recycled yarn has not changed significantly, but the combed cotton has slightly decreased. The price of recycled yarn remains at its previous level. The spinning factory has a two-day holiday every week to reduce the consumption of combing machines, resulting in a price drop of 4 rupees per kilogram. However, the price of recycled yarn remains stable.
Cotton prices in northern North India remained stable due to limited procurement by spinning mills. Traders claim that the current harvest is nearing its end and the arrival volume has dropped to a negligible level. The spinning factory is selling their cotton inventory. It is estimated that about 800 bales (170 kg/bale) of cotton will be delivered in northern North India.
If the weather is still good, the new works will arrive in northern North India in the first week of September. The recent floods and excess rainfall have not affected northern cotton. On the contrary, rainfall provides crops with urgently needed water. However, traders claim that the delayed arrival of rainwater from the previous year may have affected crops and caused losses.
Post time: Jul-17-2023