North Indian markets continued to witness poor demand from downstream industry for polyester-cotton (PC) yarn and acrylic yarn on Wednesday. PSF prices also remained stable. Buyers have sufficient stocks of raw material to run their units with partial capacity. Steady trend in domestic cotton prices was also a reason for bearish tone in yarn market.
Ludhiana, India’s most prominent man-made yarn market, noted steady trend in PC and acrylic yarn prices. 30 count PC combed yarn (48/52) was sold at Rs. 295-310 per kg (GST extra). 30 count PC carded yarn (65/35) was priced at Rs. 260-270 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at Rs. 190-195 per kg, according to market insight tool TexPro. Acrylic NM (2/48) was priced at Rs. 315-320 per kg, while acrylic NM (2/32) was at Rs. 280-290 per kg. PSF also remained unmoved at Rs. 123 per kg.
Meanwhile, Reliance Industries Limited (RIL) kept raw material prices as: PTA Rs. 91.10, MEG Rs. 62.30 and MELT Rs. 99.52 per kg. Global oil benchmark Brent crude futures was at $106.64 per barrel, as per TexPro. The raw material of PSF is sourced from crude oil.
ICE Cotton Futures closed with mixed session recently, with old crop contracts lower compared to new crop contracts. Both May and July cotton were down as the US dollar strengthened, and last week’s export sales were non-supportive. However, December cotton was higher. In fact, traders are questioning the 2022 data on acres on which cotton is being cultivated, given the high input costs and the Texas drought. Cotton contract for May 2022 closed at 137.53 cents, down 41 points; July 2022 closed at 133.97 cents, down 31 points; December 2022 closed at 114.82 cents, up 106 points. Cotton became more expensive for overseas purchasers due to a 0.3 percent increase in the dollar index.
In north India, cotton prices remained stable recently amid limited demand from mills at higher prices, while daily arrivals were stagnant. In Punjab, cotton was quoted at Rs. 90,000-91,200 per candy of 356 kg. In Haryana, cotton was sold at Rs. 88,200-90,200 per candy. In Upper Rajasthan, cotton was ruling at Rs. 90,800-91,400 per candy. In Lower Rajasthan, cotton was priced at Rs. 85,500-87,500 per candy.
