Cotton yarn prices remained steady in Ludhiana market as buyers were reluctant for fresh buying at very high prices. A local trader told Fibre2Fashion that production halt and cut will reduce yarn supply, but demand is also very poor. Therefore, the market will take some time to familiarise with new dynamics. According to traders, mills have reduced production of coarse cotton yarn to reduce cotton consumption. It means, availability of yarn of lower counts will be reduced. But prices movement will depend on demand.

In Ludhiana, 30 count cotton combed yarn was sold at ₹425-430 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹400-405 per kg and ₹415-420 per kg respectively. Carded yarn of 30 count was quoted at ₹405-410 per kg.

Trade sources from Delhi market said that yarn prices remained at previous level as demand was not encouraging. Mills want to further increase yarn prices, but buyers are not willing to pay higher price. 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 carded at ₹410-425 per kg.

Panipat market noted steady trend as demand was average. The market is facing lower demand from downstream industry as end-users’ buying remained very weak. Power cuts is also disrupting production activities in the furnishing textile hub. 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 230 at CNY 27,135 per ton and January 2023 traded down by CNY 275 at CNY 27,200 per MT today. ZCE cotton September lost CNY 210 to CNY 21,040 per MT and January 2023 contract traded down by CNY 190 to CNY 20,725 per MT.

ICE cotton futures are trading with mixed tone on Monday in electronic trading. ICE cotton July contract gained US cent 0.92 and rose to US cent 143.19 per pound. But October contract lost US cent 3.19 to US cent 131.78 per pound. ICE cotton December also slipped US cent 0.28 to US cent 124.90 per pound. New crop contracts are trading with losses.

MCX cotton June contract was down by ₹100 to ₹48,100 per bale of 170 kg. July contract also lost ₹480 to ₹47,850 per bale. May contract came into red zone after initial positive tone on buying for short covering before settlement. May contract was noted at ₹48,230 with loss of ₹70 per bale.

Fibre2Fashion News Desk (KUL)