North Indian spinners are under severe stress as the weavers have reduced the purchase of yarn. This has resulted in a decline in yarn rates from INR2-4 per kg.
Weavers’ uptake of yarn has declined due to lower export demand and experts see no signs of improvement. Spinning mills many times in the past partially halted cotton yarn production to prevent stock accumulation and are considering doing so even now.
As a result, Ludhiana and Delhi markets faced payment issues and declining demand, while Panipat’s recycled yarn market remained under stress. The recycled PC yarn prices remained stable.
In Delhi yarn prices declined by INR2-4 due to weak demand and spinners are contemplating closing mills for a few days. They cannot shift to polyester because the demand for manmade yarn is also weak.
There was also a decline in yarn prices in the Ludhiana market with cotton yarn trading INR2-3 per kg lower than previous prices. Players in the entire textile value chain were not optimistic about the immediate revival of demand. They point out that when yarn demand declines it is an indication of lower uptake throughout the value chain.
In Panipat, the recycled yarn market was relatively stable through the buying was slow. The industry players pointed yarn demand from the weaving industry was very poor in Panipat as well. The spinners operating in Panipat were not willing to reduce prices due to higher production costs. Recycled yarn and raw material prices remained stable.
Yarn market in India is under stress due to slower exports
