Cotton yarn prices decline in south India, uncertainty prevails

The Mumbai market witnessed a price ease of ₹2-3 per kg across most counts and varieties. The market is not expected to see improvements in cotton yarn. A Mumbai trader informed Fibre2Fashion, "The market will see lower buying until the end of the summer season. Demand will not pick up until the end of June."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,400-1,450 (approximately $16.67-$17.36) and ₹1,300-1,360 per 5 kg (approximately $15.57-$16.29) (excluding GST), respectively. Other prices include 60 combed warp at ₹328-332 (approximately $3.93-$3.98) per kg, 80 carded weft at ₹1,390-1,430 (approximately $16.65-$17.12) per 4.5 kg, 44/46 carded warp at ₹250-258 (approximately $2.99-$3.09) per kg, 40/41 carded warp at ₹255-260 (approximately $3.05-$3.11) per kg, 40/41 combed warp at ₹288-293 (approximately $3.45-$3.51) per kg, and 30/32 carded warp at ₹242-245 (approximately $2.90-$2.93) per kg, according to trade sources.

The Tiruppur market also noticed a decline in carded yarn as small spinning mills were desperate to sell their production by offering higher discounts. This led to a drop in cotton yarn prices by ₹3-4 per kg for the carded variety. However, combed yarn prices remained stable amid slow lifting. Trade sources expressed a lack of confidence in the demand from the downstream industry. A recent spike in container freight rates will also dent market sentiment.

In Tiruppur, knitting cotton yarn prices were noted on Thursday as 30 count combed cotton yarn at ₹268-273 (approximately $3.21-3.27) per kg (excluding GST), 34 count combed cotton yarn at ₹277-282 (approximately $3.32-3.38) per kg, 40 count combed cotton yarn at ₹290-295 (approximately $3.47-3.53) per kg, 30 count carded cotton yarn at ₹241-245 (approximately $2.89-2.93) per kg, 34 count carded cotton yarn at ₹247-251 (approximately $2.96-3.01) per kg and 40 count carded cotton yarn at ₹253-258 (approximately $3.03-3.09) per kg, as per market sources.

In Gujarat, despite a decline in ICE cotton, cotton prices remained steady. Traders suggested that lower cotton arrivals raised hopes for an increase in prices. Therefore, the Gujarat market ignored the declining trend in ICE cotton, which pared gains from the previous trading session. Cotton arrivals were recorded at 14,000-15,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 33,000-35,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹57,000-57,500 (approximately $682.60-$688.59) per candy of 356 kg, while southern mills were looking to buy cotton at ₹57,500-58,000 (approximately $688.59-$694.58) per candy.

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)