Cyclone Biparjoy has further weakened market sentiments as cotton yarn demand in north India was already declining. This has resulted in prices falling amid a bearish market, particularly in the western states.
Ludhiana cotton prices decreased by INR3 per kg but remained stable in Delhi despite poor demand. Panipat noted weak sentiment for recycled yarn and raw materials. Market sentiments have been further affected by Cyclone Biparjoy, which brought normal life and production activities in the western states to a standstill.
Cotton yarn prices have dropped by INR3 per kg according to a trader. Mills and sellers are under pressure to offer lower prices as buyers have become more cautious. The cyclone in Gujarat has also disrupted market sentiments, he added.
The Delhi market reported stable cotton yarn prices though the demand for cotton yarn from exporters and the domestic industry remained weak. The recycled yarn market which is usually bullish in Panipat also remained quiet. Most counts and varieties of recycled yarn were traded at their previous prices. Mills remained pessimistic about demand increasing, even if prices were to drop further.
North Indian cotton prices further declined as buyers showed no interest in fresh purchases. The market sentiment remained bearish due to weak buying from the garment industry. Traders reported limited arrivals, but spinning mills were uninterested in new purchases.
On Thursday the cotton arrival was 1,350-1,400 bales of 170 kg throughout north India. The natural fiber was traded at INR5775-5875 per 37.324 kg in Punjab, INR5725-5825 per 37.324 kg in Haryana, and INR6050-6150 per 37.2 kg in upper Rajasthan. It sold for INR55500-57000 per candy of 356 kg in lower Rajasthan.
Cyclone Biparjoy further dampen cotton yarn demand in north India as prices decrease
