North Indian cotton yarn prices turn bearish amid global uncertainty

“The already sluggish demand weakened further as the entire textile sector is facing uncertainty. Spinning mills have reduced their offerings by ₹10 per kg as they are witnessing weaker buying interest. Carded yarn is facing more pressure as it is more domestic market centric variety,” SK Shrivastava, a Delhi-based trader told Fibre2Fashion.

According to market sources, buyers are waiting to assess the impact of recent geo-political developments. Since they do not want to take any risk, they are not eager for new buying.  

In Delhi, cotton yarn of 30 count combed was traded at ₹370-380 per kg, 40 count combed at ₹400-410 per kg, 30 count carded at ₹345-355 per kg and 40 count carded at ₹360-365 per kg, according to Fibre2Fashion’s market insight tool TexPro. 10 count weaving (O/E) yarn was quoted at ₹120-125 per kg, while 16 count weaving (O/E) at ₹160-165 per kg.

A trade source from Ludhiana said that traders were expecting some movement as the voting for the state assembly is over, but the international situation has become a serious factor which can impact market dynamics. Therefore, fabric manufacturers are following wait and watch policy, and will plan their business activities after evaluating the impact of the current Ukraine crisis. 

In Ludhiana, cotton yarn of 20 and 30 counts in combed variety were traded down by ₹10 at ₹350-360 per kg and ₹365-375 per kg respectively. Carded yarn in 30 counts was quoted at ₹350-360 per kg, as per TexPro.

In Panipat, cotton yarn prices were recorded as: 10s recycled yarn (white) at ₹90-95 per kg, 10s recycled yarn (dyed) ₹90-100 per kg, and 20s recycled yarn (dyed) ₹100-125 per kg. 10s optical yarn was traded at ₹90-100 per kg in the market. 10s recycled yarn (White) was down by ₹5 per kg, but other varieties of recycled yarn were traded steady.

In the global market, ZCE cotton yarn May 2022 futures traded higher by CNY 60 at CNY 28,395 per ton and September 2022 traded up by CNY 210 at CNY 28,035 per MT today. ZCE cotton March gained CNY 50 to CNY 21,780 per MT and May contract traded down by CNY 15 to CNY 21,290 per MT.

ICE cotton futures rose on Wednesday, supported by rise in the grain markets, while investors were cautious of rising Russia-Ukraine tensions. Cotton contract for March 2022 closed at 122.4 cents, up 129 points; May 2022 closed at 121.3 cents, up 101 points; while December 2022 closed at 102.48 cents, up 82 points. According to trade analysts, the market just moving sideways and was trading relatively quietly as everyone is observing the situation in Ukraine.

Meanwhile, cotton prices remained stable in the north Indian markets on Thursday amid limited demand from mills, while daily arrivals dropped. Cotton prices witnessed decline trend in last two trading sessions. Today, In Punjab, cotton was quoted at ₹74,400-75,200 per candy of 356 kg. In Haryana, cotton was traded at ₹71,800-73,800 per candy. In Upper Rajasthan, the prices were hovering at ₹76,000-76,400 per candy. In Lower Rajasthan, cotton was sold at ₹71,400-73,400 per candy.

Fibre2Fashion News Desk (KUL)