Spinning mills in north India not keen to reduce cotton yarn prices

A trader from Ludhiana told Fibre2Fashion that demand is yet not improved in local yarn market because of poor lifting from weaving and garment industry. But cotton yarn prices were unchanged as mills were not ready to cut prices due to lower supplies of cotton and yarn. They expected that yarn prices will gain because of off-peak season for cotton supplies. Local supplies are decreasing in various mandis. In Ludhiana, 30 count cotton combed yarn was sold at ₹415-420 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹385-400 and ₹405-415 per kg respectively. Carded yarn of 30 count was quoted at ₹380-400 per kg.

A source from Delhi market also said that the demand was not very encouraging. Supplies from mills are also limited. Stockists and traders were selling from their stocks. The market pipeline is emptying. Mills were not ready to reduce yarn prices despite price cut in cotton fibre. Delhi market noted steady prices in yarn amid weaker demand. In Delhi market, 30 count combed yarn was traded at ₹390-410 per kg (excluding GST), 40 count combed at ₹435-450 per kg, 30 count carded at ₹365-375 per kg and 40 count carded at ₹405-415 per kg.

Panipat’s textile industry is facing power shortage which is leading to recycled yarn shortage. According to traders, yarn prices are not getting support despite limited supplies because of weaker demand from downstream industry. Panipat’s industries are not getting power supply in night, and there are frequent power cuts in daytime also which is resulting in production loss. A trade source said that the industry was facing very weak demand because of off-peak season for sales of furnishing products. In Panipat market, 10s recycled yarn (white) was traded at ₹105-115 per kg, 10s recycled yarn (coloured - high quality) at ₹130-140 per kg, 10s recycled yarn (coloured - low quality) at ₹90-100 per kg and 20s recycled PC yarn (coloured) at ₹170-180 per kg. 10s optical yarn was traded at ₹125-130 per kg in the market (excluding GST).

In the global market, ZCE cotton yarn May 2022 futures traded down by CNY 300 to CNY 27,115 per ton and September 2022 sold lower by CNY 235 at CNY 27,925 per MT today. ZCE cotton May lost CNY 180 to CNY 21,295 per MT and September contract traded down by CNY 150 to CNY 21,380 per MT. ICE cotton futures continued to correct lower on Friday as strength of a dollar weighed. The most-active second month cotton contracts on ICE futures for July fell 2.04 cents, or 1.48 per cent, to 135.85 cents per lb.

In north India, cotton prices declined by ₹200-300 per candy of 356 kg on Monday, extending downside for the third consecutive day, weighed down by weak demand from spinning mills, while daily arrivals stood lower. In Punjab, cotton prices were quoted at ₹92,700 to 93,800 per candy. In Haryana, cotton was traded at ₹91,000 to 93,000 per candy. In Upper Rajasthan, cotton was priced at ₹94,000 to 94,100 per candy. In Lower Rajasthan, cotton was sold at ₹88,600 to 90,800 per candy.

Fibre2Fashion News Desk (KUL)