Severe cold wave dampens cotton yarn market in north India

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As north India is reeling under severe cold wave, cotton yarn prices noticed steady trend and there was no movement of prices in major markets of Delhi, Panipat and Ludhiana. In Delhi, the continued restrictions to stop the spread of COVID-19 and increased policing ahead of the Republic Day parade on January 26 also deterred buyers from fresh booking.

Moreover, according to traders, sluggish demand restricted priced at current level despite higher production cost due to costlier cotton. According to market estimate, there is a difference of ₹10-15 per kg between millers’ quotes and market prices. “Buyers were buying yarn just for immediate need. They are not ready to buy any extra quantity even on discounted rate because they do not see improvement in demand very soon,” a trader from Delhi told Fibre2Fashion.

According to market sources of Ludhiana, current scenario is not good but summer season will begin sooner or later. Traders now expect buying for summer clothing season to begin in the first week of February.

As north India is reeling under severe cold wave, cotton yarn prices noticed steady trend and there was no movement of prices in major markets of Delhi, Panipat and Ludhiana. In Delhi, the continued restrictions to stop the spread of COVID-19 and increased policing ahead of the Republic Day parade on January 26 also deterred buyers from fresh booking.

Cotton yarn of 20 and 30 counts in combed variety were traded steady at ₹355-365 per kg and ₹380-390 per kg respectively in Ludhiana. Carded yarn in 30 counts was quoted at ₹310-320 per kg, according to Fibre2Fashion’s market analysis tool TexPro.

In Delhi, cotton yarn of 30 count combed was traded steady at ₹345-355 per kg, 40 count combed at ₹370-390 per kg, 30 count carded at ₹355-365 per kg and 40 count carded at ₹390-400 per kg, according to 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.

In Panipat, cotton yarn prices were recorded as: 10s recycled yarn (white) 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 surged by ₹300-404 per candy of 356 kg in north Indian markets on Monday amid better demand at lower prices. While cotton daily arrivals recorded an increase, the prices had declined in the last two days of the last week.

In Punjab, cotton prices were quoted in the range of ₹69,900-71,200 per candy. In Haryana, cotton prices were ruling between ₹68,000-70,100 per candy. In Upper Rajasthan, cotton was sold at ₹70,500-71,400 per candy. In Lower Rajasthan, cotton prices were recorded at ₹68,600-71,500 per candy.

In the global market, ZCE cotton yarn May 2022 futures traded down by CNY 65 to CNY 29,040 per ton, while September 2022 traded steady at CNY 28435 per MT today. ICE cotton futures edged lower on Friday amid weakness in outside markets. Cotton contract for March 2022 closed at 120.75 cents, down 212 points; May 2022 closed at 117.98 cents, down 169 points; and December 2022 closed at 98.85 cents, down 16 points.
 

Fibre2Fashion News Desk (KUL)



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