Cotton yarn prices down in Tiruppur, but south India market optimistic

Mumbai's market observed stable prices across different types of cotton yarn despite weak demand from the weaving sector. Trade insiders reported that fabric prices initially rose following the extension of the Diwali holiday within the weaving industry. Nevertheless, these gains were short-lived as the garment industry's slow uptake caused prices to dip once again. A Mumbai trader told Fibre2Fashion, “The longer closure of power looms and handlooms will reduce the supply of fabric, which can support prices after Diwali. But the recent gains in fabric were short-lived due to poor demand.” 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,400-1,420 and ₹1,275-1,330 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹315-322 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-259 per kg, 40/41 carded warp at ₹238-244 per kg, 40/41 combed warp at ₹262-266 and 30/32 carded warp at ₹227-232 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market saw a reduction in cotton yarn prices by ₹1-2 per kg due to weak demand from the weaving industry. Spinning mills are incurring losses of ₹10-15 per kg, despite the recent drop in cotton prices, as trade sources reported. A Tiruppur trader told F2F, "Mills are experiencing a disparity at current cotton yarn prices. They are offloading their stock at reduced prices because they require liquidity to fulfil their financial obligations. However, the market is optimistic about a demand increase after Diwali." 

In Tiruppur, cotton yarn prices remained stable. The prices were noted as 30 count combed cotton yarn at ₹258-263 per kg (excluding GST), 34 count combed cotton yarn at ₹266-271 per kg, 40 count combed cotton yarn at ₹280-285 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹237-242 per kg and 40 count carded cotton yarn at ₹240-250 per kg, as per TexPro. 

Cotton prices in the Gujarat market fell by ₹400-500 per candy of 356 kg following a drop in ICE cotton. The December contract of ICE cotton traded at 80.64 US cents per pound, a decrease of 0.28 US cents. Traders report that spinning mills are eager to purchase more cotton but are seeking lower prices. Traders expect that cotton prices will not decline further as they have already reached the government's minimum support price (MSP). Seed cotton traded at ₹1,400-1,430 per maund of 20 kg (₹7,000-7,150 per quintal), while the Cotton Corporation of India (CCI) plans to buy seed cotton at ₹7,020 per quintal and is likely to enter the market after Diwali. In the Gujarat market, Shankar-6 cotton ranged from ₹56,500-57,500 per candy of 356 kg. Southern mills were looking to purchase cotton at ₹57,000-58,000 per candy. Gujarat's cotton arrivals were about 32,000 bales of 170 kg each, with an all-India estimate of 115,000-118,000 bales. 

ALCHEMPro News Desk (KUL)