Carded cotton yarn price softens in north India; combed holds steady

In Delhi market, price of carded varieties of cotton yarn fell by ₹2 per kg. But yarn prices stayed steady in Ludhiana and Panipat markets, despite a significant decline in prices of cotton over the last couple of days due to various reasons.

According to industry sources, recent fall in cotton prices provided the much-needed relief to the spinning mills, as they could not increase yarn prices when the price of cotton witnessed sharp rise last month as demand was very weak. Now, spinning mills got a chance to build up cushion of higher margins due to lower cost of production. Even traders and stockists have also now got a chance to protect their margin.

In Ludhiana, cotton yarn of 20 and 30 counts in combed variety were traded steady at ₹350-360 per kg and ₹365-375 per kg respectively. Carded yarn in 30 count was quoted at ₹340-350 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In Delhi, cotton yarn of carded varieties was traded down by ₹2 per kg. 30 count combed yarn was traded at ₹360-365 per kg, 40 count combed at ₹390-400 per kg, 30 count carded at ₹335-345 per kg and 40 count at ₹355-360 per kg, as per TexPro. 10 count weaving (O/E) yarn was quoted flat at ₹120-125 per kg, while 16 count weaving (O/E) at ₹160-165 per kg.

In Panipat, cotton yarn prices were recorded as: 10s recycled yarn (white) at ₹90-95 per kg, 10s recycled yarn (dyed) at ₹90-100 per kg, 20s recycled yarn (dyed) at ₹100-125 per kg. 10s optical yarn was traded at ₹90-100 per kg in the market. All the varieties of recycled yarn were noted at previous level as there was not much happening in the segment due of off-peak season.

In the global market, ZCE cotton yarn May 2022 futures traded lower by CNY 435 at CNY 27,875 per ton and September 2022 traded down by CNY 330 at CNY 27,410 per MT today. ZCE cotton March lost CNY 370 to settle at CNY 20,835 per MT and May contract also traded down by CNY 370 at CNY 20,785 per MT.

ICE cotton futures declined on Friday, despite a stronger export sales report, as investors assessed the consequences of Russia’s invasion of Ukraine on the natural fibre. Cotton contract for March 2022 closed at 122.12 cents, down 47 points; May 2022 closed at 118.63 cents, down 53 points; and December 2022 closed at 100.33 cents, down 94 points.

Meanwhile, cotton prices softened by ₹200-400 per candy of 356 kg in north Indian markets for the second consecutive session on Monday amid sluggish demand from mills, while daily arrivals remained stable. As per traders, domestic prices fell as cotton followed similar line with ICE cotton. In Punjab, cotton was quoted at ₹74,000-74,800 per candy. In Haryana, cotton prices were noted at ₹71,400-73,400 per candy. In Upper Rajasthan, cotton prices were quoted at ₹75,500-76,000 per candy. In Lower Rajasthan, cotton was priced at ₹71,000-72,800 per candy.

Fibre2Fashion News Desk (KUL)