Recycled yarn prices rise in India as European supply disrupted

India’s top furnished yarn market Panipat is not getting enough import supplies of second hand clothes and woollens from Europe due to the ongoing Russian-Ukraine war. This has created scarcity of secondary fibre which is obtained from old clothes and woollens (rugs), pushing up the prices of recycled yarn by ₹5-10 per kg, according to market information.

Panipat market is known for recycled cotton and non-cotton yarn, which is used for furnished fabrics. According to traders, it is currently slump season for furnishing market. However, recycled yarn mills were facing acute crisis of old clothes and woollens from Europe, which is major supplier for Panipat market, where mills import old clothes and woollens and turns into fibre and then use for manufacturing of yarn. A local trader said that furnishing market will pick up after June and will continue to perform better till Diwali.

In Panipat, 10s recycled yarn (white) was traded at ₹95-100 per kg, 10s recycled yarn (coloured – high quality) at ₹95-100 per kg, 10s recycled yarn (coloured – low quality) at ₹65-70 per kg, and 20s recycled yarn (coloured) at ₹125-140 per kg. 10s optical yarn was traded at ₹100-110 per kg in the market.

India’s top furnished yarn market Panipat is not getting enough import supplies of second hand clothes and woollens from Europe due to the ongoing Russian-Ukraine war. This has created scarcity of secondary fibre which is obtained from old clothes and woollens (rugs), pushing up the prices of recycled yarn by ₹5-10 per kg, according to market information.

However, there was no significant price movement in virgin cotton yarn in Ludhiana and Delhi markets, as demand from downstream industry remained very poor. A trader from Ludhiana said that mills were trying to increase yarn prices but demand from fabric manufacturers is not supporting for such a rise. Mills’ prices were already hovering ₹10-20 per kg above the market rates as market is facing higher supplies compared to demand. Garment units were producing at very limited scale from domestic market. Export demand is even more uncertain.

In Ludhiana, cotton yarn remained stable due to limited trade. 20 and 30 count cotton yarn in combed variety were traded at ₹340-370 per kg and ₹350-380 per kg respectively. 25 count combed yarn was sold at ₹350-380 per kg. Carded yarn in 30 count was quoted at ₹200-320 per kg, as per Fibre2Fashion market insight tool TexPro.

In Delhi, cotton yarn was traded steady amid silent market. 30 count combed yarn was traded at ₹360-370 per kg, 40 count combed at ₹380-400 per kg, 30 count carded at ₹323-333 per kg, and 40 count carded at ₹334-354 per kg, according to TexPro. 10 count weaving (O/E) yarn was quoted at ₹120-125 per kg, while 16 count weaving (O/E) was at ₹160-165 per kg.

In global market, ZCE cotton yarn May 2022 futures traded lower by CNY 160 at CNY 28,390 per ton, while September 2022 traded up by CNY 5 at CNY 27,935 per MT today. ZCE cotton March lost CNY 140 to trade at CNY 21,300 per MT and May contract traded down by CNY 65 to CNY 20,210 per MT.

ICE cotton futures edged lower on Wednesday, despite a slightly bullish supply-demand report. Cotton contract May 2022 closed at 117.47 cents, down 50 points; July 2022 closed at 113.21 cents, down 32 points; December 2022 closed at 101.69 cents, down 38 points.

In Punjab, cotton prices were quoted at ₹75,000-76,200 per candy. In Haryana, the prices were ruling at ₹72,400-74,600 per candy. In Upper Rajasthan, cotton was sold at ₹76,600-77,200 per candy. In Lower Rajasthan, cotton was priced at ₹71,500-73,600 per candy.

Fibre2Fashion News Desk (KUL)

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