Cotton yarn prices crashed in South India as demand from both domestic and exports markets dried up because buyers were not keen on taking any risk in view of the looming uncertainty of geo-political developments after Russian attack on Ukraine. Buyers preferred to adopt a wait-and-watch policy while they assess the situation on the trade front.
“Crude oil is the only cause of concern for the Indian textile industry due to its inflationary impact. Currently, there is no major impact on exports as Russia and Ukraine are not major market for Indian exporters. Hopefully, the conflict will not extend to other countries. But, if the war prolongs and expands, things may move in reverse. So, domestic textile industry is taking a cautious approach at present, TT Limited Managing Director Sanjay K Jain told.
A broker from Mumbai, BN Ladda, said that cotton yarn prices fell down up to Rs. 12 per kg as buyers were absent from the market. He told that around 60 percent powerlooms have closed down temporarily as demand from garment industry has dried up. Therefore, spinning millers, traders and stockists have come under pressure to sell on lower prices. According to market sources, buyers in the entire value chain of textile sector are cautious for fresh buying.
In Mumbai market, yarn prices fell down by Rs. 5-12 per kg as demand weakened further. However, 80 carded weft yarn showed upward trend due to scarcity of supply. 60 count carded cotton yarn of warp and weft varieties were traded at Rs. 1,910-1,960 per 5 kg and Rs. 1,680-1,730 per 5 kg respectively. 80 count carded cotton yarn of weft variety was sold at Rs. 1,900-1,950 per 4.5 kg. Carded cotton yarn (44/46 count) of warp variety was traded steady at Rs. 1,730-1,770 per 5 kg.
Tiruppur market recorded fall of Rs. 3-8 per kg in prices of all the varieties of cotton yarn. 30 count combed cotton yarn was traded at Rs. 360-370 per kg, 34 counts combed at Rs. 367-374 per kg and 40 counts combed at Rs. 395-405 per kg. Cotton yarn of 30 count carded was sold at Rs. 320-325 per kg, 34 count carded at Rs. 322-327 per kg and 40 count carded at Rs. 340-350 per kg, according to market insight tool TexPro.
In the global market, ZCE cotton yarn May 2022 futures traded lower by CNY 85 at CNY 28,310 per tonne and September 2022 traded down by CNY 295 at CNY 27,740 per MT today. ZCE cotton March declined by CNY 125 to CNY 21,165 per MT and May contract traded down by CNY 105 at CNY 20,365 per MT.
ICE cotton futures closed with mixed session recently. Many markets that had been significantly higher in the early morning became flat to slightly lower as the day progressed. Cotton prices dropped as a result of decline in other markets. Cotton contract for March 2022 closed at 122.59 cents, up 19 points; May 2022 closed at 119.16 cents, down 214 points; December 2022 closed at 101.27 cents, down 121 points.
Meanwhile, cotton prices ruled steady in the markets of Gujarat recently amid limited demand from mills, while daily arrivals also showed no significant change. As domestic spinning mills adopted a wait-and-watch approach due to the Russian military attack on Ukraine, cotton prices steadied in the spot market. 29 mm cotton was at Rs. 77,000-78,000 per candy of 356 kg. Grade cotton was recorded at Rs. 77,000-78,000 per candy, B grade cotton at Rs. 76,000-77,000 per candy and the average grade cotton at Rs. 75,000-75,500 per candy. V797 variety new cotton was quoted at Rs. 43,000-45,500 per candy.
