Cotton yarn demand likely to rise as weather improves in north India




As cold wave has given way to clear weather and sunny atmosphere, it has raised hope of improvement of demand for cotton yarn as business activities will buck up in downstream industries in the entire north Indian region. Delayed cold wave had dampened market sentiments till last week as summer clothing production activities could not get started.

Current demand at the start of the week did not allow spinning mills to raise cotton yarn prices, which hovered at the levels of previous week.

A trade source from Ludhiana told Fibre2Fashion that garment manufacturers will begin buying of finished cloth as they can expect summer demand. But current demand from fabric manufacturers did not let spinning mills to increase their quoted prices. A Delhi based trader said that few mills were quoting even lower prices as they wanted to attract buyers. Delhi and Ludhiana markets noted similar trend.

As cold wave has given way to clear weather and sunny atmosphere, it has raised hope of improvement of demand for cotton yarn as business activities will buck up in downstream industries in the entire north Indian region. Delayed cold wave had dampened market sentiments till last week as summer clothing production activities could not get started.

In Ludhiana, cotton yarn of 20 and 30 counts in combed variety were traded steady at ₹360-370 per kg and ₹385-395 per kg respectively. Carded yarn in 30 counts was quoted at ₹360-370 per kg, according to Fibre2Fashion’s market analysis tool TexPro.

In Delhi, cotton yarn of 30 count combed was traded steady at ₹355-365 per kg, 40 count combed at ₹420-430 per kg, 30 count carded at ₹340-350 per kg and 40 count carded at ₹400-410 per kg, as per TexPro. 10 count weaving (O/E) yarn was quoted at ₹125-130 per kg, while 16 count weaving (O/E) at ₹165-170 per kg.

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In Panipat, cotton yarn prices of 10s recycled yarn (white) were recorded at ₹95-100 per kg, 10s recycled yarn (dyed) at ₹90-100 per kg, and 20s recycled yarn (dyed) at ₹100-125 per kg. 10s optical yarn was traded at ₹90-100 per kg in the market.

Meanwhile, cotton prices remained stable in the North Indian market for the second consecutive session on Monday amid limited demand from mills, while daily arrivals were stagnant. In Punjab, the spot cotton was quoted at ₹73,800-74,900 per candy of 356 kg each. In Haryana, cotton was sold at ₹71,700-73,900 per candy. In Upper Rajasthan, the prices were ruling at ₹74,200-75,000 per candy. In Lower Rajasthan, cotton prices remained at ₹71,500-73,500 per candy.

In the global market, ZCE cotton yarn May 2022 futures traded higher by CNY 555 at CNY 29,375 per ton and September 2022 traded higher by CNY 565 at CNY 28,730 per MT today. On last Friday, ICE cotton futures scaled lower amid stronger dollar, but the prices of natural fibre remained bullish last week. ICE cotton contract for March 2022 closed at 126.74 cents, down 88 points; May 2022 closed at 123.99 cents, down 74 points; December 2022 closed at 103.81 cents, down 7 points.

Fibre2Fashion News Desk (KUL)





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Originally posted 2022-02-07 20:06:33.

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