Cotton yarn prices in India slipped further by up to Rs. 8 per kg as the market received sluggish demand. According to trade sources, domestic demand did not support market sentiment as production activities remained weak in garment units. Export demand is weak due to uncertainty of geo-political developments after Russia’s attack on Ukraine.
Domestic demand for summer clothing is not yet visible. A broker from Mumbai told that the market was expecting better demand in March. But current demand was not up to the expectations. Prices fell because market was neither supported by domestic nor export demand. Local demand is expected to pick up after mid-March, but it will be short lived because of financial year ending. He said that around 70-80 percent power looms are closed temporarily as demand from garment industry was very poor.
Export demand was also low in the market as buyers were not ready to take any risk. Traders said that export demand was already weak, and current crisis added to the worries. Exporters were facing difficulty to get containers. Availability of containers reduced as global vessel movement was disrupted after Russia-Ukraine conflict and restrictions imposed by the western powers.
In Mumbai market, yarn prices fell by Rs. 2-8 per kg as demand weakened further. 60 count carded cotton yarn of warp and weft varieties were traded at Rs. 1,910-1,920 and 1,670-1,720 per 5 kg, respectively. Carded cotton yarn (44/46 count) of warp variety was traded at Rs. 1,700-1,740 per 5 kg. 80 count carded cotton yarn of weft variety was sold at Rs. 1,870-1,920 per 4.5 kg.
Tirupur market also witnessed a downfall in cotton yarn prices. 30 count combed cotton yarn was traded at Rs. 355-365, 34 count combed at Rs. 365-375 and 40 count combed at Rs. 390-400 per kg. Cotton yarn of 30 count carded was sold at Rs. 315-320, 34 count carded at Rs. 325-330 and 40 count carded at Rs. 338-348 per kg, according to market analysis tool TexPro.
In global market, ZCE cotton yarn May 2022 futures traded lower at CNY 155 to CNY 27,640 per tonne and September 2022 traded down CNY 225 at CNY 28,205 per MT today. ZCE cotton March declined CNY 65 to CNY 21,145 per MT and May contract traded down CNY 25 to CNY 20,205 per MT. ICE cotton futures surged on Thursday amid strong exports sales data, while a firmer dollar curbed gains. Cotton contract for May 22 closed at 119.8 cents, up 126 points, Jul 22 closed at 115.86 cents, up 78 points, and Dec 22 closed at 101.58 cents, up 77 points.
Cotton prices edged higher in Gujarat for the second consecutive session recently amid continued demand from mills, while daily arrivals registered an increase. 29 mm cotton was traded at Rs. 76,000 to Rs. 77,500 per candy. Cotton A grade was traded at Rs. 76,500 to Rs. 77,500, B grade at Rs. 75,000 to Rs. 75,500 and average grade cotton at Rs. 73,500 to Rs. 74,500 per candy. V797 variety was quoted at Rs. 40,000 to Rs. 42,000 per candy.
