Cotton yarn prices declined by ₹5 per kg in Delhi and Ludhiana markets today as demand did not support current prices. Trade sources said that cotton yarn price is likely to fall further as export demand will have to face seasonal sluggish trend. India’s cotton yarn export may decline as new Chinese cotton will arrive in the market by April.
“The demand for cotton yarn is very weak which led to prices falling down by ₹5 per kg. Downward trend in cotton prices also pressurised yarn prices,” Surinder Jain, president of Ludhiana Yarn Merchants Association told Fibre2Fashion.
Traders from Delhi said that summer demand will not be enough to lift market sentiments as weaker export demand will dampen market sentiments. Buyers are already cautious for fresh buying as they expect further downfall. According to a Delhi-based yarn trader, “Delhi market witnessed down fall of ₹5 per kg. It may see further fall as buyers will further reduce their purchases. Demand may not improve in near future. Cheaper cotton will also pave the way for downfall.”
Panipat market also noted steady prices amid muted demand. Recycled yarn may also witness down trend due to poor demand from the downstream industry. Traders said that furnishing cloth market remains silent during the current month.
In Ludhiana, cotton yarn of 20 and 30 counts in combed variety were traded down by ₹5 per kg at ₹360-370 per kg and ₹390-400 per kg respectively. Carded yarn in 30 count was quoted at ₹350-360 per kg, according to Fibre2Fashion’s market insight tool TexPro.
In Delhi, cotton yarn was traded lower by ₹5 per kg. 30 count combed yarn was traded at ₹380-390 per kg, 40 count combed at ₹385-400 per kg, 30 count carded at ₹335-345 per kg and 40 count carded at ₹350-360 per kg, according to TexPro. 10 count weaving (O/E) yarn was quoted at ₹120-125, while 16 count weaving (O/E) at ₹160-165 per kg.
In Panipat, cotton yarn prices were recorded as: 10s recycled yarn (white) at ₹95-100 per kg, 10s recycled yarn (dyed) at ₹90-100 per kg, 20s recycled yarn (dyed) at ₹100-125 per kg. 10s optical yarn was traded at ₹90-100 per kg in the market. 2/40 combed yarn of new cotton fibre was traded at ₹400-410 per kg.
Meanwhile, cotton prices fell by ₹400-500 per candy of 356 kg in the north Indian states on Thursday amid subdued demand from mills, while daily arrivals were stable. In Punjab, cotton was sold at ₹76,000-77,500 per candy. In Haryana, cotton was ruling at ₹75,000-76,600 per candy. In Upper Rajasthan, cotton was quoted at ₹76,000-77,800 per candy. In Lower Rajasthan, cotton was sold at ₹72,600-74,400 per candy for spot delivery.
In the global market, ZCE cotton yarn May 2022 futures traded lower by CNY 235 at CNY 28,360 per ton and September 2022 traded higher by CNY 155 at CNY 27,895 per MT today. ICE cotton futures posted triple digit loss on Wednesday, reflecting losses in equities markets owing to geopolitical concerns in Russia and Ukraine, ahead of the US Department of Agriculture’s weekly export sales report. Cotton contract for March 2022 closed at 121.91 cents, down 113 points; May 2022 closed at 119.49 cents, down 129 points; July 2022 closed at 116.78 cents, down 125 points.
