Lower cotton arrival may push PC yarn demand in north India

A trader told Fibre2Fashion, “PC Yarn prices slipped by up to ₹5 per kg because demand from downstream is still very poor. But lower cotton arrival can change the market dynamics.” Sources said that lower arrival of cotton and yarn will encourage buyers to build up sufficient stock for future needs, which will expand market pipeline. On the other hand, mills are reducing cotton yarn production, and are shifting to polyester yarn or polyester-cotton yarn production. Therefore, the consumption of man-made fibre, polyester spun fibre (PSF) is increasing gradually. But the availability of comber (cotton waste) will be reduced. The price of 20 count PC (recycled) yarn increased by ₹5 to ₹195-200 per kg because mills use comber in place of fresh cotton for production of this variety.

In Ludhiana market, 30 count PC combed yarn (48/52) was sold at ₹290-308 per kg (Inclusive GST), according to Fibre2Fashion’s market insight tool TexPro. 30 count PC carded yarn (65/35) was priced at ₹260-270 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at ₹195-200 per kg. 30 count poly spun yarn was sold at ₹190-200 per kg and recycled 30 count poly spun yarn at ₹180-185 per kg. Acrylic NM (2/48) was priced at ₹330-340 per kg and acrylic NM (2/32) at ₹280-290 per kg. PSF remained unchanged at ₹123 per kg. Reliance Industries Limited (RIL) has fixed prices of raw material as: PTA ₹93.10 (+ ₹1) and MEG ₹63.10 (+ ₹1.10) and MELT at ₹106.20 (+1.30) per kg. Brent crude futures, the global oil benchmark, was up 2.61 per cent to $104.99 per barrel.

In the global market, ZCE cotton yarn May 2022 futures traded higher by CNY 70 to CNY 26,755 per ton and September 2022 traded down by CNY 70 to CNY 27,220 per MT today. ZCE cotton May gained CNY 15 to CNY 21,125 per MT and September contract traded up by CNY 35 to CNY 21,280 per MT. ICE Cotton futures rebounded on Tuesday as hot weather conditions in Texas spurred supply worries. However, strength of the US dollar, massive COVID-19 restrictions in China, and weak equity markets applied check on price gains.

In north India, cotton prices remained steady on Wednesday after decline for four straight days. In Punjab, cotton was quoted at ₹92,700 to ₹93,500 per candy of 356 kg. In Haryana, cotton was traded at ₹91,000 to ₹93,000 per candy. In Upper Rajasthan, cotton was priced at ₹93,200 to ₹93,500 per candy. In Lower Rajasthan, cotton was traded at ₹88,500 to ₹90,800 per candy.

Fibre2Fashion News Desk (KUL)