The announcement of deferment of the scheduled hike in GST rate from 5 percent to 12 percent has failed to improve cotton yarn market in North India. Cotton yarn prices of major varieties remained stable today in the market due to muted demand. Traders expect that demand will pick up after mid-January when production for summer season begins.
According to market sources, spinning millers were facing increased prices of cotton, but they could not to raise yarn prices due to weaker demand. A Delhi-based trader told that millers were quoting higher yarn prices, but no buyer was keen to get deals at higher prices.
Trade sources said that demand is expected to remain weak in first fortnight of January as downstream industry concludes winter season production in December, while the production of summer season begins in second half of January. Therefore, better demand can be expected after mid-January.
Cotton yarn of 20 and 30 counts in combed variety were traded steady at Rs. 335-345 and Rs. 360-370 per kg respectively in Ludhiana. Carded yarn in 30 counts was quoted at Rs. 335-345 per kg, according to market analysis tool TexPro.
In Delhi market, cotton yarn of 30 count combed was sold at Rs. 345-355 per kg, 40 count combed at Rs. 370-390 per kg, 30 count carded at Rs. 300-320 per kg and 40 count carded at Rs. 335-355 per kg. 10 count weaving (O/E) yarn was quoted at Rs. 125-130 per kg, while 16 count weaving (O/E) was at Rs. 165-170 per kg. Kolkata market also witnessed muted trend in cotton yarn prices.
Panipat, a prominent market for recycled yarn, also recorded stable trend. The market recorded prices of 10s recycled yarn (white) at Rs. 95-100 per kg, 10s recycled yarn (dyed) at Rs. 90-100 per kg, 20s recycled yarn (dyed) at Rs. 100-125 per kg, and 10s optical yarn at Rs. 90-100 per kg.
Meanwhile, cotton prices softened by Rs. 100-200 per candy (356 kg each) in the markets of North Indian states for second consecutive session on Monday amid reduced demand from the mills, while daily arrivals recorded an increase. Cotton prices were quoted at Rs. 66,700-67,700 in Punjab, Rs. 65,500-Rs 66,400 in Haryana, and Rs. 67,000-67,500 in Upper Rajasthan.
