Slow demand, cash crunch limit cotton yarn trade in north India

In Ludhiana, higher cotton prices are discouraging spinners to push up business activities, while poor demand is restricting them from increasing yarn prices, according to market sources.

Traders said that consumer industries are buying yarn in very limited quantity for immediate need, and fabric manufacturers were not keen to book big deals. A Delhi based-trader told Fibre2Fashion that many prominent millers were not selling yarn very aggressively as they do not see conducive atmosphere for better prices and margins.

In Ludhiana, cotton yarn of 20 and 30 counts in combed variety were traded steady at ₹355-365 per kg and ₹380-390 per kg respectively. Carded yarn in 30 counts was quoted at ₹360-365 per kg, according to Fibre2Fashion’s market analysis tool TexPro.

In Delhi, cotton yarn of 30 count combed was traded steady at ₹345-355 per kg, 40 count combed at ₹ 370-390 per kg, 30 count carded at ₹345-355 per kg, and 40 count carded at ₹335-355 per kg. 10 count weaving (O/E) yarn was quoted at ₹125-130 per kg, while 16 count weaving (O/E) was at ₹165-170 per kg.

In Panipat also, yarn prices were ruling at previous level as trading activities remained very limited. The market recorded prices as: 10s recycled yarn (white) at ₹95-100 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.

Cotton prices softened by ₹100-200 per candy of 356 kg each in the markets of North Indian states on Monday amid decreased buying by the mills at inflated prices, while daily arrivals recorded an increase. In Punjab, the spot delivery prices of cotton were quoted at ₹69,400- 70,400 per candy. In Haryana, the spot delivery prices were quoted at ₹67,200-69,200 per candy. In Upper Rajasthan, the prices were quoted at ₹68,800-69,900 per candy. In Lower Rajasthan, the spot delivery prices were ruling at ₹67,300-70,200 per candy.

In the global market, ZCE cotton yarn January 2022 futures traded up by CNY 190 to CNY 28,205 per ton and May 2022 traded higher by CNY 195 at CNY 28,925 per MT today. ICE cotton futures posted triple digit gain on Friday amid robust demand, and a cut in the estimate for US output and inventories in the latest WASDE report. Cotton contract for March 2022 closed at 119.7 cents, up 286 points; May 2022 closed at 116.34 cents, up 187 points; and December 2022 closed at 96.83 cents, up 115 points.

ALCHEMPro News Desk (KUL)