Cotton yarn prices slip in north India as buyers pessimistic

A trader from Delhi told Fibre2Fashion that garment units were producing at very limited scale for the domestic market, and export demand is even more uncertain. “Exporters were not getting foreign orders due to current uncertain scenario. Shortage of containers is also another challenge. Non-availability of containers is current major problem which is causing for slower shipments. Traders and factory owners were reluctant to have deals in the time of high volatility in cotton prices.”

According to market sources from Ludhiana, fabric manufacturers were avoiding having new deals as they were not confident for demand of fabric from garment industry.

In Ludhiana, cotton yarn slipped by ₹5 per kg in various varieties. Cotton yarn of 20 and 30 counts in combed variety were traded at ₹348-358 per kg and ₹365-370 per kg respectively. Carded yarn in 30 count was quoted at ₹335-350 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In Delhi also, cotton yarn was traded lower by ₹4-5 kg. 30 count combed yarn was traded at ₹330-340 per kg, 40 count combed at ₹360-370 per kg, 30 count carded at ₹323-333 per kg and 40 count carded at ₹350-354 per kg, as per TexPro. 10 count weaving (O/E) yarn was quoted at ₹120-125 per kg, while 16 count weaving (O/E) at ₹160-165 per kg.

However, recycled cotton yarn prices were noted at previous levels in Panipat. 10s recycled yarn (white) was at ₹90-95 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. All the varieties of recycled yarn were noted at previous level as there was not much trading activities in the furnishing segment.

In the global market, ZCE cotton yarn May 2022 futures traded higher by CNY 75 at CNY 28,280 per ton and September 2022 traded up by CNY 90 at CNY 27,730 per MT today. ZCE cotton March gained by CNY 15 and increased to CNY 21,160 per MT and May contract traded up by CNY 30 to CNY 20,235 per MT. ICE cotton futures edged lower on last Friday amid stronger dollar and potential downside mood in stocks as the Russia-Ukraine conflict worsened. Cotton contract for May 2022 closed at 116.42 cents, down 338 points; July 20 22 closed at 113.11 cents, down 275 points; and December 2022 closed at 100.65 cents, down 93 points.

Meanwhile, cotton prices surged by ₹300-400 per candy of 356 kg in North Indian states on Monday amid improved demand from mills, while daily arrivals recorded an increase. In Punjab, cotton was quoted at ₹74,600-75,600 per candy. In Haryana, cotton was priced at ₹72,100-74,100 per candy. In Upper Rajasthan, cotton was traded at ₹76,400-76,800 per candy. The prices were noted at ₹71,400-73,400 per candy in Lower Rajasthan.

Fibre2Fashion News Desk (KUL)