The higher price of cotton increased the price of cotton yarn by ₹10-20 per kg in the north Indian knitwear hub of Ludhiana, despite poor demand. However, cotton yarn prices remained stable in other north Indian markets of Delhi and Panipat. Uncertainty regarding trading activities and the severity of the third COVID wave also reduced the market sentiments.
Cotton prices remained stable in north Indian markets today, but it has seen an increase of about ₹800-1,000 per candy of 356 kg since the last mid-week. So, spinning mills have increased cotton yarn prices in the entire north Indian market, according to market sources.
While slightly better demand allowed spinners to materialize price rise in the Ludhiana market, the same might not happen in Delhi, according to trade sources. Traders said that consumer industries are buying yarn in very limited quantities only for their immediate needs.
Suresh Gupta, a trader, and patron of the Delhi Yarn Merchants Association told Fibre2Fashion that recent fresh restrictions amid the third wave of coronavirus are also disrupting market activities. Traders and downstream industries are facing problems in smooth functioning in view of worries over the spread of coronavirus.
Cotton yarn of 20 and 30 counts in combed variety was traded higher by ₹20 at ₹355-365 per kg and ₹365-375 per kg respectively in Ludhiana. Carded yarn in 30 counts was quoted at ₹330-340 per kg. However, cotton yarn of 30 counts combed was traded steady in Delhi at ₹370-380 per kg, 40 counts combed at ₹410-420 per kg, 30 counts carded at ₹350-360 per kg, and 40 counts at ₹380-390 per kg, according to Fibre2Fashion’s market analysis tool TexPro. 10 count weaving (O/E) yarn was quoted at ₹125-130 per kg, while 16 count weaving (O/E) was at ₹165-170 per kg.
Panipat, a recycled yarn market in north India, also recorded a stable trend. The market recorded prices as 10s recycled yarn (white) at ₹95-100 per kg, 10s recycled yarn (dyed) at ₹90-100 per kg, and 20s recycled yarn (dyed) ₹100-125 per kg. 10s Optical yarn was traded at ₹90-100 per kg in the market.
Cotton prices remained steady in the markets of North Indian states on Monday amid limited demand from the mills. However, daily cotton arrivals increased. Cotton prices have witnessed a stable trend in the last two trading sessions consecutively. However, the prices have witnessed an increase of ₹800-1,000 per candy of 356 kg each in last week. In Punjab, the spot delivery prices of cotton were quoted between ₹67,900 and ₹69,700 per candy. In Haryana, the spot delivery prices of cotton were quoted in the range of ₹68,100 to ₹68,800 per candy. In Upper Rajasthan, the spot delivery prices of cotton were quoted at ₹69,700 to ₹70,200 per candy. In Lower Rajasthan, the spot delivery prices of cotton declined to ₹68,000 to ₹70,000 per candy.
In the global market, ZCE cotton yarn January 2022 futures traded lower by CNY 255 at CNY 27,730 per ton and May 2022 traded down by CNY 130 at CNY 28,525 per MT today. ICE cotton futures scaled higher last Friday amid weaker dollar. Cotton contract for March 2022 closed at 115.12 cents, up 40 points; May 2022 closed at 112.88 cents, up 60 points; and December 2022 closed at 94.52 cents, up 53 points.
