Cotton yarn prices see slight correction in north India's Ludhiana

According to traders, spinning mills had increased cotton yarn prices by ₹10 per kg due to costlier natural fibre but the offered prices could not sustain, as the demand of cotton yarn is still very weak. Fabric manufacturers are seeing muted buying from garment industry.

A trader from Ludhiana told Fibre2Fashion that higher cotton yarn prices slipped due to sluggish demand. However, few varieties of cotton yarn inched up slightly from last Monday. In Ludhiana, 30 count cotton combed yarn was sold at ₹400-420 per kg (GST Inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹385-402 per kg and ₹395-407 per kg respectively. Carded yarn of 30 count was quoted at ₹390-400 per kg.

Delhi market noted steady prices amid weaker demand. According to a trader, next one fortnight will be very important because the entire value chain will get psychological influence due to the removal of duty on import of cotton by the Indian government. If cotton prices come down, it will boost buying in the entire value chain. In Delhi market, 30 count combed yarn was traded at ₹390-410 per kg, 40 count combed at ₹435-450 per kg, 30 count carded at ₹365-375 per kg and 40 count at ₹405-415 per kg (GST extra), as per TexPro.

Recycle yarn prices were on the upside in Panipat market because of shortage of raw material, as the ongoing Russia-Ukraine war has disrupted old clothes supplies from Europe. The old clothes are used to get recycled fibre. Mills and stockists also increased yarn prices stating higher cost of production due to price rise in cotton and polyester fibre. 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 (GST extra).

In the global market, ZCE cotton yarn May 2022 futures traded down by CNY 15 to CNY 27,540 per ton, while September 2022 sold higher by CNY 50 at CNY 28,155 per MT today. ZCE cotton May gained CNY 5 to CNY 21,250 per MT and September contract traded down by CNY 15 to CNY 21,350 per MT.

ICE cotton futures traded limit-up on Wednesday, as India’s decision to allow duty-free imports strengthened the natural fibre’s bullish outlook. Cotton contract for May 2022 closed at 142.77 cents, up 426 points; July 2022 closed at 141.51 cents, up 406 points; while December 2022 closed at 122.18 cents, up 215 points. “The notable drought situation in the southern parts of the US, smaller Indian crop, and on-call sales are some supporting factors,” said an analyst.

In north India, cotton prices surged by ₹1,200-1,500 per candy of 356 kg for the third consecutive session on Thursday amid strong demand from mills, while daily arrivals improved. In Punjab, cotton was quoted at ₹94,000 to 95,000 per candy. In Haryana, cotton prices were ruling at ₹92,200 to 94,000 per candy. In Upper Rajasthan, cotton was priced at ₹94,800 to 95,200 per candy. In Lower Rajasthan, cotton was noted at ₹88,800 to 90,800 per candy.

Fibre2Fashion News Desk (KUL)