Cotton yarn prices stable in north India; cotton touches new high

Spinning mils did not show interest to reduce yarn prices today due to the continuous rise in cotton prices in international and domestic markets. Traders said that the trade in the entire value chain remained stuck because mills are not interested to reduce yarn prices, while fabric and garment manufacturers are in hand-to-mouth situation due to poor demand and uncertain market conditions.

A trader from Ludhiana told Fibre2Fashion that spinning mills did not reduce yarn prices because cotton prices are yet to ease down after removal of import duty. The demand of cotton yarn was still very weak, and fabric manufacturers are facing muted buying from garment industry. Cotton yarn remained steady in Ludhiana. 30 count cotton combed yarn was sold at ₹410-420 per kg (GST Inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹390-402 per kg and ₹395-407 per kg respectively. Carded yarn of 30 count was quoted at ₹390-400 per kg.

A source from Delhi market said that the market has been stuck in peculiar condition of costlier yarn and poor demand from end users. ICE cotton surged last week in the hope of higher buying from India after the removal of duty. But higher prices in international market made cotton import unviable. Delhi market noted steady prices in yarn amid weaker demand. In Delhi market, 30 count combed yarn was traded at ₹390-410 per kg (GST extra), 40 count combed at ₹435-450 per kg, 30 count carded at ₹365-375 per kg and 40 count carded at ₹405-415 per kg.

Meanwhile, home furnishings hub of Panipat is facing shortage of cotton, polyester and sweater waste which is used for making recycled yarn. Cotton waste, also known as cotton comber or comber noil, is in short supply due to lower fresh yarn production in spinning mills. Recycled polyester-cotton yarn witnessed slight price rise because of price rise in polyester waste after steep hike in fresh Polyester Spun Fibre (PSF). In Panipat market, 10S recycled yarn (white) was traded at ₹105-115 per kg (GST extra), 10s recycled yarn (coloured high quality) at ₹130-140 per kg, 10s recycled yarn (coloured - low quality) at ₹90-100 per kg and 20s recycles PC yarn (coloured) ₹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 320 to CNY 27,685 per ton and September 2022 sold higher by CNY 130 at CNY 28,280 per MT today. ZCE cotton May gained CNY 175 to CNY 21,655 per MT and September contract traded up by CNY 215 to CNY 21,575 per MT.

ICE Cotton futures on electronic trading opened sharply today. May futures contract gained 261 points to trade at 144.59 cents, while the July futures contract gained 254 points to trade at 143.25 cents per pound.

In north India, cotton prices surged by ₹400-500 per candy of 356 kg on Monday amid increased demand from spinning mills, while daily arrivals declined. In Punjab, cotton was quoted at ₹93,600 to 94,800 per candy. In Haryana, cotton was priced at ₹91,800 to 94,200 per candy. In Upper Rajasthan, cotton prices were ruling at ₹95,000 to 95,400 per candy. In Lower Rajasthan, the prices were noted at ₹89,400 to 91,400 per candy.

Fibre2Fashion News Desk (KUL)