OfBusiness Cotton Dailies

9^th June’23

Price

• Cotton yarn prices in the Ludhiana market rose by ₹3 per kg due to mills raising their selling rates.
• The 30-count cotton combed yarn was sold at ₹265-275 per kg in the Ludhiana market, while the 20 and 25-count combed yarns were traded at ₹255-260 per kg and ₹260-265 per kg, respectively.
• In the Delhi market, cotton yarn prices remained stable, with the 30-count combed yarn traded at ₹265-270 per kg.

Demand and Supply

• Traders in North India anticipate an improvement in demand for intermediary products such as fiber, yarn, and fabric.
• Traders are concerned about the demand from the retail market but expect sufficient stock buildup in the last few months of the current season ending in September.
• Chinese buying of cotton yarn contributed to increased demand in the Ludhiana market.
• The consumer industry’s demand in Panipat remained subdued, making buyers cautious about new purchases.

News

• Mills in the Ludhiana market increased their card rates for cotton yarn, leading to a rise in prices.
• Several mills had previously halted the sale of raw materials but resumed after raising their selling rates.
• Export demand did not provide support to the domestic cotton yarn value chain.
• The recent increase in cotton MSP (Minimum Support Price) could motivate the industry to build up stocks.

OFB’s Opinion

• Given the cautiousness of buyers in the Panipat market towards new purchases, it appears that recycled yarn prices have maintained a consistent trend.
• It could be advisable for mills in Panipat to exercise caution by refraining from reducing yarn prices in an attempt to attract buyers, indicating a prudent approach in the current market.