North Indian cotton yarn steady amid rising demand concerns

North India's cotton yarn market is holding its ground on prices even as demand shows signs of softening. Over recent sessions, major trading hubs such as Ludhiana and Delhi reported largely stable rates. Meanwhile, Panipat — a centre for recycled yarn — has seen improved activity, suggesting pockets of resilience within the sector.

Spinning mills across the region are trying to maintain price discipline. “Spinning mills are confident about stable demand and are trying to hold cotton yarn prices. However, there are concerns about rising polyester yarn supplies at lower prices,” a Ludhiana-based trader told Fibre*Fashion. That worry is central: with the removal of QCO, cheaper polyester variants have begun to seep into domestic markets and are being viewed as a direct challenge to cotton yarn’s market share.

A key reason polyester looks attractive to buyers is price parity coupled with improved handfeel. Many polyester yarn varieties now mimic cotton’s texture while coming at a lower cost — a combination that could prompt downstream buyers (garment manufacturers, knitters and retailers) to switch, particularly for price-sensitive product lines. If such substitution grows, spinning mills reliant on cotton volumes may face demand compression.

However, not all segments are equally exposed. Recycled and speciality yarns — areas showing strength in places like Panipat — provide a buffer through niche demand and sustainability-driven orders. Mills that can differentiate via quality, traceability (organic/Better Cotton/sustainability certifications), and targeted B2B relationships may be better positioned to weather a polyester influx.

What mills and traders should watch

• Price spreads: Monitor cotton vs polyester price gap weekly — narrowing spreads raise substitution risk.

• Order patterns: Track order durations and volumes from major garment houses; repeated short-term buying signals uncertainty.

• Recycled yarn demand: Capitalize on sustainability trends and premium positioning.

• Product differentiation: Promote certified cotton, speciality counts, and value-added finishes to retain buyers.

Short-term outlook
Expect pricing stability to continue if mills sustain output discipline. But if polyester imports or domestic polyester spinning expand rapidly, cotton yarn demand may come under pressure in the coming months. Strategic focus on quality, closer buyer relationships, and exploring blends or recycled cotton options can reduce vulnerability.

Conclusion

North India's cotton yarn market is in a cautious holding pattern: prices steady for now, yet underlying demand has softened and a low-cost polyester alternative is emerging as a tangible threat after QCO removal. The near-term balance will hinge on how quickly polyester supply grows and how effectively cotton mills differentiate their product through quality, sustainability credentials and deeper buyer engagement. Proactive measures — from tighter supply management to targeted marketing of specialty cotton yarns — will be crucial to protecting market share.