No takers of cotton yarn at higher prices in north India

In north Indian markets, cotton prices touched around ₹72,000 per candy of 356 kg earlier this week, but the prices have eased down in the last couple of days. The rise in cotton prices is putting more pressure on the margin of spinning mills. Surinder Jain, president of Ludhiana Yarn Merchants Association told Fibre2Fashion that consumer industries were not keen to book fresh deals. “There is very poor demand so yarn prices could not get support.”

A Delhi-based trader said that spinning mill owners were quoting higher yarn prices, but no buyer was keen to get deals at higher prices. The recent decision of the government to defer GST hike also failed to improve market sentiments. According to trade sources there is usually a sluggish trend in demand during the first fortnight of January as downstream industry is yet to begin production of clothes for summer season.

In Ludhiana, spinning mills quoted the price of cotton yarn of 20 and 30 counts in combed variety at ₹345-355 per kg and ₹370-380 per kg respectively. Carded yarn in 30 counts was quoted at ₹350-360 per kg, according to Fibre2Fashion’s market analysis tool TexPro.

In Delhi market, 30 count combed cotton yarn was sold at ₹345-355 per kg, 40 count combed at ₹370-390 per kg, 30 count carded at ₹300-320 per kg, and 40 count at ₹335-355 per kg. 10 count weaving (O/E) yarn was quoted at ₹125-130 per kg, and 16 count weaving (O/E) at ₹ 65-170 per kg. Kolkata market also witnessed muted trend in cotton yarn prices.

Panipat, a prominent market for recycled yarn, also recorded stable trend. The market recorded price of 10s recycled yarn (white) at ₹95-100 per kg, 10s recycled yarn (dyed) at ₹90-100 per kg, and 20s recycled yarn (dyed) at ₹100-125 per kg. 10s optical yarn was traded at ₹90-100 per kg in the market.

Cotton prices softened by ₹600-800 per candy of 356 kg in the markets of north Indian states on Thursday amid reduced demand from the mills at higher prices, while daily arrivals recorded a decrease. Cotton prices had increased in Haryana and Rajasthan in the last two working days. In Haryana, the spot delivery prices of cotton were quoted ₹67,300 to ₹68,000 per candy. In Upper Rajasthan, the spot delivery prices of cotton were quoted at ₹68,900 to ₹69,400 per candy. In Lower Rajasthan, the spot delivery prices of cotton declined to ₹67,000 to ₹69,000 per candy.

In the global market, ZCE cotton yarn January 2022 futures traded higher by CNY 10 at CNY 27,280 per ton and May 2022 traded higher by CNY 90 at CNY 28,165 per MT today. ICE cotton futures closed with mixed session on Wednesday since investors awaited the US Department of Agriculture's (USDA) weekly export sales report. ICE Cotton contract for March 2022 closed at 116.28 cents, down 11 points; May 2022 closed at 113.61 cents, down 4 points; and December 2022 closed at 94.3 cents, up 28 points.
 

Fibre2Fashion News Desk (KUL)