Cotton yarn prices fall on slow buying in south India

In Mumbai, cotton yarn prices decreased by ₹2-3 per kg due to slow demand. A trader from Mumbai told Fibre2Fashion, “SME payment rule discouraged buying of cotton yarn. If new government indicates for ease in the provision, the market can take a U-turn after mid-June. Currently, manufacturers are buying raw material on heavy discount and are selling finished product on discounts. They are just trying to keep their production running with little or no margin. It caused for decline in cotton yarn prices.”

In Mumbai, 60-carded yarn of warp and weft varieties were sold at ₹1,400-1,450 (approximately $16.80-$17.40) and ₹1,275-1,360 (approximately $15.30-$16.32) (excluding GST), per 5 kg respectively. Other prices include 60 combed warp at ₹327-331 (approximately $3.92-$3.97) per kg, 80-carded weft at ₹1,350-1,390 (approximately $16.20-$16.68) per 4.5 kg, 44/46-carded warp at ₹255-260 (approximately $3.06-$3.12) per kg, 40/41-carded warp at ₹250-258 (approximately $3.00-$3.10) per kg, 40/41 combed warp at ₹288-293 (approximately $3.46-$3.53) per kg, and 30/32-carded warp at ₹243-247 (approximately $2.92-$2.96) per kg, according to trade sources.

Tiruppur market also witnessed decrease of prices in cotton yarn. The intermediary product was traded at lower prices by ₹2 per kg. Trade sources said that Tiruppur and other parts of southern India’s textile hubs are facing shortage of labour. But recent rains in Tamil Nadu brightened possibility of return of labour.

In Tiruppur, knitting cotton yarn prices were noted on Thursday as: 30 count combed cotton yarn at ₹268-273 (approximately $3.22-3.28) 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 $3.48-3.54) per kg, 30 count carded cotton yarn at ₹239-243 (approximately $2.87-2.92) per kg, 34 count carded cotton yarn at ₹245-249 (approximately $2.94-2.99) per kg and 40 count carded cotton yarn at ₹251-256 (approximately $3.01-3.07) per kg.

In Gujarat, cotton prices remained range bound in the last couple of days amid limited buying from spinning mills. Traders said that US cotton market was not supportive for domestic market. Domestic cotton prices were stable as traders expected lower arrival in the coming weeks.

Cotton arrivals were recorded at 12,000-13,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 34,000-36,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹57,000-57,500 (approximately $684.17-$690.17) per candy of 356 kg, while southern mills were looking to buy cotton at ₹57,500-58,000 (approximately $690.17-$696.17) 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)