Cotton yarn prices of major varieties gained today 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 ₹10 at ₹330-340 and ₹350-360 per kg respectively in Ludhiana. Carded yarn in 30 counts was quoted at ₹320-330 per kg with gain of ₹5 per kg, according to Fibre2Fashion’s market analysis tool TexPro.
In Delhi market, cotton yarn 30 count combed was sold at ₹330-350, 40 count combed at ₹370-390, 30 count carded at ₹300-320 and 40 count carded at ₹335-355 per kg. 10 count weaving (O/E) yarn was quoted at ₹125-130, while 16 count weaving (O/E) was at ₹165-170 per kg.
Cotton yarn prices of major varieties gained today 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.
Panipat, which is known for recycled cotton yarn, recorded steady trend. The price for 10s recycled yarn (white) was recorded at ₹95-100 per kg, 10s recycled yarn (dyed) at ₹75-95 per kg, 20s recycled yarn (dyed) at ₹100-125 per kg and 10s optical yarn at ₹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 Fibre2Fashion.
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 per cent to 12 per cent with effect from January 1. But a source from Ludhiana told Fibre2Fashion 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 ton and May 2022 traded higher by CNY 55 at CNY 26,725 per MT today. On last Wednesday, 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 ₹63,878-64,355 per candy of 356 kg each. Earlier, it was traded at ₹63,687-64,164 per candy. Haryana cotton J-34 (RG) 27-28 (MIC 4+) was traded at ₹62,543-63,115 per candy. Earlier, it was traded at ₹62,448-62,829 per candy. Rajasthan cotton J-34 (RG) 26.5-28mm (MIC 4.00-4.5) was sold at ₹63,878-64,355 per candy. Earlier, it was traded at ₹63,592-64,069 per candy.
Fibre2Fashion News Desk (KUL)
