Cotton yarn steady but recycled yarn prices surge in north India

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 demand remained very weak. However, mills have increased their selling prices. According to trade sources, mills are increasing yarn prices because they are paying higher prices for the natural cotton. According to the traders, mill rates were ruling higher by ₹10-15 per kg than the market rates.

In Ludhiana, 30 count cotton combed yarn was sold at ₹430-435 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 20 and 25 count combed yarn were traded at ₹410-415 per kg and ₹425-430 per kg respectively. Carded yarn of 30 count was quoted at ₹360-365 per kg.

Traders from Delhi market said that weaving industry is not able to pass on complete increase of yarn prices. Therefore, higher yarn prices are discouraging buyers for fresh purchase. So, cotton yarn prices remained stable. 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 carded at ₹410-420 per kg.

However, Panipat saw slightly better demand from weaving units. A trader from the market, Sanjiv Davar told Fibre2Fashion that cotton yarn demand improved by around 5-10 per cent as exporters were buying yarn for product sampling and prospective export orders. After a long sluggish trend, there were indications for better buying. Furnishing textile exporters were preparing for the forthcoming Frankfurt fair and other international trade events. Exporters receive bulk orders in May and June from Europe and the US. They begin production in July onwards to complete shipment of orders by September. International retailers and other brands need to stock sufficiently before the Christmas season.

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. 10s recycled yarn (coloured - high quality) increased by ₹15 to ₹145-155 per kg. 30s recycled PC yarn (coloured) also increased by ₹10 to ₹205-210 per kg. The price of comber also increased by ₹6 to ₹156 per kg, which also supported recycled yarn prices.

In the global market, ZCE cotton yarn September 2022 futures traded lower by CNY 85 to CNY 27,580 per ton and January 2023 sold higher by CNY 25 at CNY 27,525 per MT today. ZCE cotton September lost CNY 25 to CNY 21,265 per MT and September contract traded down by CNY 10 to CNY 20,865 per MT.

Indian cotton futures shot up on Monday after lowering cotton production estimate further by Cotton Association of India (CAI). MCX May cotton futures surged 2.63 per cent to ₹49,920 per bale of 170 kg.

Fibre2Fashion News Desk (KUL)