Cotton yarn prices increased by Rs. 5-10 per kg in Delhi as mills passed on higher cost of production after rise in cotton prices. According to traders, buying by exporters also supported yarn prices, as they bought yarn after securing export orders. However, Ludhiana market remained stable as buyers were cautious for fresh buying at very high prices.
Trade sources from Delhi market said that cotton and polyester-cotton yarn demand improved as buyers, particularly exporters came ahead for fresh buying. A local trader told that exporters secured some orders from global market which supported yarn demand. Millers are regularly passing on higher production cost on buyers as exorbitant cotton prices are not bearable for them.
In Delhi market, 30 count combed yarn was traded at Rs. 415-430 per kg (GST extra), 40 count combed at Rs. 455-470 per kg, 30 count carded at Rs. 365-385 per kg and 40 count at Rs. 410-425 per kg.
Cotton yarn prices remained steady in Ludhiana market as buyers were reluctant for fresh buying at very high prices. The demand was very weak. But mills have increased their selling prices. According to the traders, mill rates were ruling higher by Rs. 10-15 per kg than the market rates. In Ludhiana, 30 count cotton combed yarn was sold at Rs. 425-435 per kg (GST inclusive), according to market insight tool TexPro. 20 and 25 count combed yarn was traded at Rs. 400-415 per kg and Rs. 410-420 per kg respectively. Carded yarn of 30 counts was quoted at Rs. 400-410 per kg.
North India’s furnishing textile hub of Panipat also noted steady trend amid average demand. However, the hub is facing supply crunch of comber amid better demand from exporters. The market is witnessing better demand since the beginning of this week, but supply crunch of comber is throwing a challenge for Panipat-based industry. Since spinning mills have decreased cotton yarn production, they are releasing comber as bye-product in limited quantity.
In Panipat market, 10s recycled yarn (white) was traded at Rs. 115-125 per kg (excluding GST), 10s recycled yarn (coloured – high quality) at Rs. 145-155 per kg, 10s recycled yarn (coloured – low quality) at Rs. 100-110 per kg and 20s recycled PC yarn (coloured) at Rs. 190-200 per kg. 10s optical yarn was traded at Rs. 125-130 per kg in the market. Comber was sold at Rs. 156 per kg.
In the global market, ZCE cotton yarn September 2022 futures traded lower by CNY 235 at CNY 27,455 per ton and January 2023 traded down by CNY 180 at CNY 27,490 per MT today. ZCE cotton September lost CNY 140 to CNY 21,220 per MT and January 2023 contract traded down by CNY 90 to CNY 20,760 per MT.
Cotton prices in North India remained under pressure due to weaker demand from spinning mills at very high price level. Cotton prices were noted around Rs. 1,07,000-1,08,000 per candy of 356 kg. MCX cotton May contract was down by Rs. 340 to Rs. 48,730 per bale of 170 kg.
