The prices of cotton yarn continued to remain stable in North India as recent rains and low temperature has prolonged the delay in revival of summer clothing demand. To some extent, desperation for sale increased on the part of traders, brokers and spinning mills. Some were even offering unofficial discounts on market rates to lure them buyers.
“We cannot have big hope from summer season as downstream industry has ample stocks of grey fabrics, finished fabrics and readymade garments. Cotton yarn prices were ruling at discount of Rs.10-15 per kg on spinning mills’ rates which shows poor demand from downstream industry,” a Delhi-based yarn trader SK Shrivastava told.
He also cautioned for downward trend after mid-February as Chinese new cotton arrival will depress market sentiments globally including in India.
Panipat market also noted similar trend on demand front. According to the trade sources, new cotton yarn and recycled cotton yarn were traded at previous prices. Recycled yarn is not getting support for the last few weeks as there is ample availability of raw material i.e., fibre of used clothing. Poor demand from furnishing segment was also depressing market sentiments. Normally furnishing demand picks up before Diwali.
In Ludhiana market too, cotton yarn demand remained weak. Cotton yarn of 20 and 30 counts in combed variety were traded stable at Rs. 360-370 per kg and Rs. 390-400 per kg respectively. Carded yarn in 30 counts was quoted at Rs. 360-370 per kg, according to market analysis tool TexPro.
In Delhi, cotton yarn of 30 count combed was traded steady at Rs. 350-360 per kg, 40 count combed at Rs. 420-430 per kg, 30 count carded at Rs. 340-350 per kg and 40 count carded at Rs. 380-395 per kg, according to TexPro. 10 count weaving (O/E) yarn was quoted at Rs.125-130 per kg, and 16 count weaving (O/E) at Rs.165-170 per kg.
In Panipat, cotton yarn prices were recorded as: 10s recycled yarn (white) at Rs. 95-100 per kg, 10s recycle yarn (dyed) at Rs. 90-100 per kg, and 20s recycled yarn (dyed) at Rs. 100-125 per kg. 10s optical yarn was traded at Rs. 90-100 per kg in the market. 2/40 combed yarn of new cotton fibre was traded at Rs. 400-410 per kg.
Meanwhile, cotton prices surged by Rs.400-600 per candy of 356 kg in north Indian market on Thursday amid continued demand from mills, while daily arrivals registered an increase. In Punjab, cotton was quoted at Rs. 74,000-76,100 per candy. In Haryana, cotton was sold at Rs. 72,200-75,000 per candy. In Upper Rajasthan, the prices were ruling at Rs. 75,200-76,200 per candy. In Lower Rajasthan, cotton prices increased to Rs. 71,600-73,600 per candy.
In the global market, ZCE cotton yarn May 2022 futures traded lower by CNY 35 to CNY 29,015 per tonne and September 2022 traded lower by CNY 40 at CNY 28,450 per MT today. ICE cotton futures closed with mixed trend on Wednesday. Cotton contract for March 2022 closed at 126.43 cents, down 72 points; May 2022 closed at 123.8 cents, down 24 points; December 2022 closed at 105.61 cents, up 26 points. A trade analyst said, “The USDA lowered US export estimate due to supply crisis, which in turn raised the ending stocks, this is somewhat negative for the market. The report is neutral to slightly negative.”
