Cotton yarn prices remain stable in South India, average demand noted

Cotton yarn prices were stable in Mumbai and Tiruppur markets of South India. The demand from weaving industry was average, which brought stability in yarn prices. Traders said that the current cotton prices were higher due to global factors, but spinning mills were unable to raise yarn prices as demand was not supportive enough. However, they have stopped discount or reduced it to meet their increasing cost of production. The market was hopeful for rise in yarn prices after couple of days.

In Mumbai, cotton yarn prices steadied at previous levels. The market witnessed weaker demand from the spinning industry. A trader from Mumbai market told Fibre2Fashion, “There was better demand of cotton yarn in the last week, which drove the prices to higher side. But the demand softened in the opening of this week. The market was hopeful for improvement in buying from downstream industry.”

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,420-1,445 and ₹1,290-1,330 per 5 kg (excluding GST), respectively. Other prices include: 60 combed yarn warp ₹325-330 per kg, 80 carded weft ₹1,325-1,350 per 4.5 kg, 44/46 carded warp ₹254-260 per kg, 40/41 carded warp ₹242-246 per kg, and 40/41 combed warp ₹270-275 per kg, according to Fibre2Fashion's market insight tool TexPro.

Tiruppur market too noted stability in most of the counts and varieties of cotton yarn. The market saw lower to average demand from the domestic industry. Tamil Nadu based mills have rolled over yarn prices for this month in their monthly review. A trader from Tiruppur told Fibre2Fashion, “Mills did not increase yarn prices despite rise in the cost of the natural fibre. Mills were trying to manage their production and sale amid slower demand. They will try in increase yarn prices, if the demand picks up. As of now, they stopped or reduced discounts on their declared rates.”

Prices in the Tiruppur market were noted as: 30 count combed cotton yarn ₹255-262 per kg (excluding GST), 34 count combed cotton yarn ₹265-272 per kg, 40 count combed cotton yarn ₹275-282 per kg, 30 count carded cotton yarn ₹230-236 per kg, 34 count carded cotton yarn ₹238-245 per kg and 40 count carded cotton yarn ₹246-252 per kg, as per TexPro.

In Gujarat, cotton prices further gained ₹300 per candy due to better demand. According to traders, the availability of cotton was limited in compared to consumption which was supportive factor for the market. There are also improved chances of cotton shipment from India to China, as the Chinese government there would need to restock after recent sale from its reserve. Shankar-6 cotton was quoted between ₹58,000-58,500 per candy. Cotton arrival was well within 5,000 bales of 170 kg each in Gujarat. All India arrival was estimated at 16,000-17,000 bales of 170 kg.

ALCHEMPro News Desk (KUL)