Cotton price in India rises on fresh demand, leads to hike in yarn prices

In India, cotton prices edged up in the third week of February on fresh demand from domestic yarn mills after prices declined in the previous week. Gujarat Sankar-6 cotton gained INR500 to INR33,600 per candy. Other varieties saw prices gain INR200-800 per candy.

As a result, cotton yarn prices climbed in India during the week, with offers regaining INR1 a kg in Ludhiana whereas remaining flat in Indore. The rise explains the rebound in cotton prices, after progressively declining in the past weeks. 30s combed for knitting prices regained INR1 a kg in the third week of February in Ludhiana while carded also gained similarly on the week.

China Cotton Index fell 89 Yuan to 12,219 Yuan a ton on the week while cotton yarn markets witnessed scattered transactions, as many players were yet to resume operations, back from holiday. Major producers were in slow recovery and most held bearish outlook over the future trend. Thus, cotton yarn markets saw thin trades and transactions are likely to recover by end of the month. In Shengze, 21s and 32s cotton yarn prices were both up US cent 1 a kg on the week due to strong currency.

In Pakistan, cotton market eased a bit as leading spinners were away from the proceedings. A slump in cotton yarn and fabric markets depressed cotton trade, and leading spinners have already imported a substantial quantity of cotton. The KCA cut its spot rates by PakRs50 to PakRs5,435 per maund ex-karachi.

Cotton yarn price in Pakistan mostly rolled over after cotton prices were revised down on the week due to poor demand. 8s and 30s carded yarn for weaving prices remained unchanged during the week.

Courtesy: Weekly PriceWatch Report