Cotton yarn demand improves in north India on new export orders

Trade sources from Delhi market said that cotton and polyester-cotton yarn demand improved as buyers, particularly exporters came ahead for fresh buying. A local trader told Fibre2Fashion that exporters secured some orders from global market which supported yarn demand. Millers are regularly passing on higher production cost on buyers as exorbitant cotton prices are not bearable for them.

In Delhi market, 30 count combed yarn was traded at ₹415-430 per kg (GST extra), 40 count combed at ₹455-470 per kg, 30 count carded at ₹365-385 per kg and 40 count at ₹410-425 per kg.

Cotton yarn prices remained steady in Ludhiana market as buyers were reluctant for fresh buying at very high prices. The demand was very weak. But mills have increased their selling prices. According to the traders, mill rates were ruling higher by ₹10-15 per kg than the market rates. In Ludhiana, 30 count cotton combed yarn was sold at ₹425-435 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹400-415 per kg and ₹410-420 per kg respectively. Carded yarn of 30 count was quoted at ₹400-410 per kg.

North India’s furnishing textile hub of Panipat also noted steady trend amid average demand. However, the hub is facing supply crunch of comber amid better demand from exporters. The market is witnessing better demand since the beginning of this week, but supply crunch of comber is throwing a challenge for Panipat-based industry. Since spinning mills have decreased cotton yarn production, they are releasing comber as bye-product in limited quantity.

In Panipat market, 10s recycled yarn (white) was traded at ₹115-125 per kg (excluding GST), 10s recycled yarn (coloured - high quality) at ₹145-155 per kg, 10s recycled yarn (coloured - low quality) at ₹100-110 per kg and 20s recycled PC yarn (coloured) at ₹190-200 per kg. 10s optical yarn was traded at ₹125-130 per kg in the market. Comber was sold at ₹156 per kg.

In the global market, ZCE cotton yarn September 2022 futures traded lower by CNY 235 at CNY 27,455 per ton and January 2023 traded down by CNY 180 at CNY 27,490 per MT today. ZCE cotton September lost CNY 140 to CNY 21,220 per MT and January 2023 contract traded down by CNY 90 to CNY 20,760 per MT.

Cotton prices in north India remained under pressure due to weaker demand from spinning mills at very high price level. Cotton prices were noted around ₹1,07,000-1,08,000 per candy of 356 kg. MCX cotton May contract was down by ₹340 to ₹48,730 per bale of 170 kg.

Fibre2Fashion News Desk (KUL)