As Chinese demand is set to ease before new crop arrival in April, spinning mills in North India are turning their focus on the domestic market. While cotton yarn prices continue to remain stable as demand from downstream is yet to pick up despite improvement in weather, few spinning mills have reduced their offer price for the domestic market.
“Mills began to reduce their offer prices for cotton yarn as they wanted to focus on domestic sale. Mills will have to explore domestic potential as Chinese demand for cotton and cotton yarn will decline before its new crop arrival in April. Therefore, the difference between mills’ rates and market rates will reduce in the weeks to come. Currently, the difference for cotton yarn was noted at Rs. 10-15 per kg,” a Delhi
based yarn trader SK Shrivastava told.
Meanwhile, the cotton yarn market in north India continues to reel under poor demand from the downstream industry. Traders were expecting better demand after improvement in weather, but that did not happen. They now do not have big hope from summer season as the downstream industry has sufficient stocks of grey fabrics, finished fabrics and readymade garments.
In Ludhiana, cotton yarn of 20 and 30 counts in combed variety were traded stable at Rs. 360-370 per kg and Rs. 390-400 per kg respectively. Carded yarn in 30 counts was quoted at Rs. 360-370 per kg, according to market analysis tool TexPro.
In Delhi, cotton yarn of 30 count combed was traded steady as at Rs. 350-360 per kg, 40 count combed at Rs. 420-430 per kg, 30 count carded at Rs. 340-350 per kg and 40 count carded at Rs. 380-395 per kg, according to TexPro. 10 count weaving (O/E) yarn was quoted at Rs. 125-130 per kg, while 16 count weaving (O/E) at Rs. 165-170 per kg.
Panipat market also noted similar market on demand front. According to the trade sources, new cotton yarn and recycled cotton yarn were traded at previous prices and were recorded as: 10s recycled yarn (white) at Rs. 95-100 per kg, 10s recycled yarn (dyed) at Rs. 90-100 per kg, 20s recycled yarn (dyed) at Rs. 100-125 per kg. 10s optical yarn was traded at Rs. 90-100 per kg in the market. 2/40 combed yarn of new cotton fibre was traded at Rs. 400-410 per kg.
In North India, cotton prices surged by Rs. 400-500 per candy of 356 kg for the second consecutive session recently amid continued demand from the spinning mills, and steady daily arrivals. In Punjab, cotton was quoted at Rs. 76,300-78,000 per candy. In Haryana, the prices were noted at Rs. 75,300-77,100 per candy. Cotton was traded at Rs. 76,300-78,300 per candy in Upper Rajasthan and Rs. 72,900-74,900 per candy in In Lower Rajasthan.
In the global market, ZCE cotton yarn May 2022 futures traded lower by CNY 10 at CNY 29,135 per tonne and September 2022 traded flat at CNY 28500 per MT today. ICE cotton futures declined as it weighed down by a higher US Department of Agriculture ending stocks estimate and a disappointing export sales report. Cotton contract for March 2022 closed at 125.28, down 38 points; May 2022 closed at 122.91, down 29 points; and December 2022 closed at 105.19, down 8 points.
