Cotton yarn prices rise in north India as cotton breaches ₹1 lakh mark

The prices of cotton yarn gained ₹5-10 per kg in Ludhiana market as mills have increased their selling prices. According to trade sources, mills are increasing yarn prices because they are paying higher prices for cotton. A local trader told Fibre2Fashion that demand remained average, and buyers are purchasing only for their immediate need.

In Ludhiana, 30 count cotton combed yarn was sold at ₹430-445 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 ₹425-430 per kg respectively. Carded yarn of 30 count was quoted at ₹390-395 per kg.

Trade sources from Delhi market said that higher prices are discouraging buyers for fresh purchase. Weaving industry is not able to pass on complete increase of yarn prices. Cotton yarn prices for carded variety increased by ₹5 per kg, but combed yarn was sold at previous rates. In Delhi market, 30 count combed yarn was traded at ₹405-425 per kg (GST extra), 40 count combed at ₹445-465 per kg, 30 count carded at ₹370-380 per kg and 40 count at ₹410-420 per kg.

The textile furnishing hub of Panipat is facing double challenges of power cut and costlier comber (cotton waste used as raw material for furnishing textile). Traders said that comber prices increased from ₹130 per kg to ₹150 per kg in last one month. Another problem is of power shortage which is disrupting production. Local authorities have announced power supply for industrial consumers on alternate days. It means that mills will get supply in 15 days in a whole month for production. Therefore, spinning mills are unable to meet out even one fourth demand in off-peak season. This pushed recycled yarn prices up by ₹5-15 per kg.

In Panipat market, 10s recycled yarn (white) was traded at ₹115-125 per kg (excluding GST), 10s recycled yarn (coloured - high quality) at ₹130-140 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.

In the global market, ZCE cotton yarn May 2022 futures traded higher by CNY 105 at CNY 26,900 per ton and September 2022 sold higher by CNY 35 at CNY 27,705 per MT today. ZCE cotton May lost CNY 40 to CNY 21,215 per MT, while September contract traded up by CNY 30 to CNY 21,260 per MT.

ICE Cotton futures settled higher on Wednesday supported by mills’ buying and concerns over next crop, despite some rains in key growing regions of the US. ICE July cotton settled 0.66 cent higher at 143.60 cents per pound. December contract settled 0.58 cent higher to 124.75 cents per pound.

Fibre2Fashion News Desk (KUL)