Cotton yarn prices gain ₹5/kg in north India on better buying

A trader from Delhi market told Fibre2Fashion that market pipeline was empty, so buyers came to market for fresh buying even on higher prices. Mills are increasing their selling rates to protect margin as cotton prices are touching new highs. Cotton yarn prices for combed variety increased by ₹5 per kg, but carded yarn was sold at previous rates. In Delhi market, 30 count combed yarn was traded at ₹400-415 per kg (GST extra), 40 count combed at ₹445-460 per kg, 30 count carded at ₹365-375 per kg and 40 count at ₹405-415 per kg.

Cotton yarn gained ₹5 per kg in Ludhiana market also. According to sources, mills are increasing yarn prices because they have no other option after frequent rise in cotton prices. Mills are struggling hard to keep their margin intact. However, buyers were buying in very limited quantity. In Ludhiana, 30 count cotton combed yarn was sold at ₹430-440 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹410-420 per kg and ₹420-425 per kg respectively. Carded yarn of 30 count was quoted at ₹390-400 per kg.

The recycled yarn market of Panipat recorded very little movement in trade due to power shortage. Yarn prices remained stable because of slow demand from weaving industry. A local trader Suresh Durga said that yarn market was not getting any support from either from export or from local buyers. While export demand is weak due to uncertain geo-political conditions, the current months are considered off-peak season for domestic furnishing market. In Panipat market, 10s recycled yarn (white) was traded at ₹105-115 per kg (excluding GST), 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.

In the global market, ZCE cotton yarn May 2022 futures traded up by CNY 290 to CNY 27,505 per ton, while September 2022 sold higher by CNY 280 at CNY 28,015 per MT today. ZCE cotton May gained CNY 130 to CNY 21,875 per MT and September contract traded up by CNY 275 to CNY 21,930 per MT.

ICE cotton witnessed steep rise after soft tone in last couple of days. Cotton futures ended at 11 years high mainly caused by mills’ short-covering and speculative buying. ICE May futures gained 4.69 cents to 158.02 cents per pound. July contract closed at 154.76 cents per pound with hike of 4.68 cents, and December finished at 129.78 cents with increase of 3.60 cents.

In north India, cotton prices on Thursday rose by ₹1,400 per candy of 356 kg as demand from spinning mills increased. Cotton arrival was also better. In Punjab, cotton was quoted at ₹96,200 to ₹98,500 per candy. In Haryana, cotton was quoted at ₹93,800 to ₹98,000 per candy. In Upper Rajasthan, cotton was sold at ₹96,800 to ₹98,500 per candy. In Lower Rajasthan, cotton was priced at ₹92,500 to ₹94,400 per candy.

Fibre2Fashion News Desk (KUL)