Cotton yarn buyers cautious pre-budget, prices stable in South India

Cotton yarn was being sold at previous prices in the Mumbai market. Buyers were cautious about new deals, which dampened market sentiment. In addition to the upcoming Union Budget, tight payment conditions were also a cause of limited demand. A trader from the Mumbai market told Fibre2Fashion, “Cotton yarn demand was slow due to multiple factors. Buyers are taking a cautious approach ahead of the upcoming budget. Tight payment conditions and a labour shortage for running power looms are also causes of concern for the market.”

In Mumbai, 60-carded yarn of warp and weft varieties was traded at ₹1,440-1,480 (approximately $16.70-$17.17) and ₹1,390-1,440 per 5 kg (approximately $16.12-$16.70) (excluding GST), respectively. Other prices included 60 combed warp at ₹338-344 (approximately $3.92-$3.99) per kg, 80-carded weft at ₹1,420-1,480 (approximately $16.47-$17.17) per 4.5 kg, 44/46-carded warp at ₹262-272 (approximately $3.04-$3.16) per kg, 40/41-carded warp at ₹256-266 (approximately $2.97-$3.09) per kg, and 40/41 combed warp at ₹288-294 (approximately $3.34-$3.41) per kg, according to trade sources.

The Tiruppur market also witnessed similar sentiments. Cotton yarn was traded at previous levels in the market as well. According to market sources, slow buying is expected to further dry up cash liquidity in the market. The Micro and Small Enterprises (MSE) payment rule will discourage buying after two weeks. The Union Budget is also an important economic event that businesses cannot overlook.

In Tiruppur, knitting cotton yarn prices were noted as follows: 30-count combed cotton yarn at ₹255-263 (approximately $2.96-$3.05) per kg (excluding GST), 34-count combed cotton yarn at ₹264-271 (approximately $3.06-$3.14) per kg, 40-count combed cotton yarn at ₹276-288 (approximately $3.20-$3.34) per kg, 30-count carded cotton yarn at ₹235-240 (approximately $2.73-$2.78) per kg, 34-count carded cotton yarn at ₹240-245 (approximately $2.78-$2.84) per kg, and 40-count carded cotton yarn at ₹248-253 (approximately $2.88-$2.93) per kg.

In Gujarat, cotton remained range-bound over the last few days. The natural fibre has experienced movement on both sides, with a fluctuation of ₹200-300 per candy of 356 kg in the last couple of days. Traders stated that ginners are trying to procure seed cotton even at slightly higher prices, but demand from spinning mills has not been encouraging. The mills are not receiving strong demand from the weaving industry. The pressure from both sides has kept cotton prices range-bound.

Cotton arrival was estimated to 30,000-32,000 bales of 170 kg in Gujarat and 160,000-165,000 bales in the country. The benchmark Shankar-6 cotton was quoted between ₹53,500-54,000 (approximately $620.61-$626.41) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,300-55,000 (approximately $629.89-$638.01) per candy. Seed cotton (Kapas) was traded at around ₹7,500-7,575 (approximately $87.00-$87.87) per quintal.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

ALCHEMPro News Desk (KUL)