MUMBAI (Commoditiescontrol) – Spun yarn prices stayed firmly in the past two weeks in India while fiber prices have increased in December and spinners were confronted with squeeze in their margins.
However, spinners are progressively recovering from the disruption, triggered by the demonetization process.
With raw material costs rising in December on both cotton and polyester markets, and demand relatively depressed, yarn producers limited the fall in their margins by refusing any decline of their price offers. Yarn stocks have been kept at low levels, which helped support yarn prices somewhat.
In Ludhiana, 30s combed cotton yarn for knitting rolled over on the week at Rs194 a kg while 40s inched up Re1 to Rs223 a kg. Carded for knitting 30s also inched up Re1 to Rs178 a kg.
The decline in margins is resulting in lower production, which is offering some support to prices.
Export prices have been raised and demand may now fall from China where competitors have not raised their offer in the same way.
Cotton prices have rebounded due to fall in daily arrivals, as farmers retain inventories in anticipation of higher prices later this year.
(By Commoditiescontrol Bureau; +91-22-40015522)
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