Cotton yarn prices of major varieties gained recently in north India due to higher prices of cotton in domestic and global markets. Slightly better demand also supported market sentiments as buyers came up to strike deals at current prices. There were also indications that the government may take some steps to remove possible problems due to proposed GST hike.
Cotton yarn of 20 and 30 counts in combed variety were traded higher by Rs.10 at Rs. 330-340 and Rs. 350-360 per kg respectively in Ludhiana. Carded yarn in 30 counts was quoted at Rs. 320-330 per kg with gain of Rs. 5 per kg, according to market analysis tool TexPro.
In Delhi market, cotton yarn 30 count combed was sold at Rs. 330-350, 40 count combed at Rs. 370-390, 30 count carded at Rs. 300-320 and 40 count carded at Rs. 335-355 per kg. 10 count weaving (O/E) yarn was quoted at Rs. 125-130, while 16 count weaving (O/E) was at Rs. 165-170 per kg.
Panipat, which is known for recycled cotton yarn, recorded steady trend. The price for 10s recycled yarn (white) was recorded at Rs. 95-100 per kg, 10s recycled yarn (dyed) at Rs. 75-95 per kg, 20s recycled yarn (dyed) at Rs. 100-125 per kg and 10s optical yarn at Rs. 80-95 per kg. According to trade sources Panipat market witnessed muted demand for recycled yarn as downstream products manufacturers remained silent from fresh buying.
However, higher prices of cotton pushed up fresh cotton yarn prices in Ludhiana, Delhi and Kolkata. Last week, spinning mill owners had quoted higher prices but market prices remained steady as demand did not support the price hike. However, better demand has resulted in price rise over the last couple of days this week. But higher production cost put stress on margins for spinning millers, a trader told.
Meanwhile, proposed GST hike is still a serious worry for fabric manufacturers, which depressed market sentiments. Fabric manufacturers had reduced their production due to proposed GST hike from 5 percent to 12 percent with effect from January 1. But a source from Ludhiana told that there may be some solution from the government to avoid disruption in textile activities. This encouraged buying of cotton yarn, and its prices gained in the last few days.
In the global market, ZCE cotton yarn January 2022 futures traded lower by CNY 485 at CNY 27,275 per tonne and May 2022 traded higher by CNY 55 at CNY 26,725 per MT. ICE cotton March 2022 futures traded at 108.83 cents, up 156 points, May 2022 closed at 106.8 cents, up 157 points, December 2022 closed at 89.99 cents per pound, up 8 points.
North India cotton prices too maintained upward trend today. Punjab cotton J-34 (RG) 27-28.5MM (MIC 4.00-4.7) was traded at Rs. 63,878-64,355 per candy of 356 kg each. Earlier, it was traded at Rs. 63,687-64,164 per candy. Haryana cotton J-34 (RG) 27-28 (MIC 4+) was traded at Rs. 62,543-63,115 per candy. Earlier, it was traded at Rs. 62,448-62,829 per candy. Rajasthan cotton J-34 (RG) 26.5-28mm (MIC 4.00-4.5) was sold at Rs. 63,878-64,355 per candy. Earlier, it was traded at Rs. 63,592-64,069 per candy.
