Cotton yarn prices rise in south India, buyers expect further hikes

The Tiruppur market has seen a rise of ₹2-4 per kg in various counts and varieties of cotton yarn. A trader from the Tiruppur market informed Fibre2Fashion, "The demand from the downstream industry and stockists is very strong. They are keen to stock up on cotton yarn before any further price increases. The hike in cotton prices has driven the cost of yarn up."In Tiruppur, cotton yarn prices were noted as 30 count combed cotton yarn at ₹275-282 (approximately $3.32-3.38) per kg (excluding GST), 34 count combed cotton yarn at ₹280-288 (approximately $3.38-3.48) per kg, 40 count combed cotton yarn at ₹293-303 (approximately $3.54-3.66) per kg, 30 count carded cotton yarn at ₹242-252 (approximately $2.92-304) per kg, 34 count carded cotton yarn at ₹250-260 (approximately $3.02-3.14) per kg and 40 count carded cotton yarn at ₹260-268 (approximately $3.14-3.24) per kg, according to Fibre2Fashion's market insight tool TexPro.

A trader from Mumbai told Fibre2Fashion, “There is no concern for the new payment rule. Power looms and stockists are focused on present market conditions. Cotton prices jumped due to a decrease in cotton arrival. Everyone is eager to purchase cotton yarn before the current season's window closes.”

In Mumbai, cotton yarn witnessed an upward trend with prices gaining ₹5-8 per kg in various counts and varieties. The 60 carded yarn of warp and weft varieties were sold at ₹1,480-1,510 (approximately $17.88-18.24) and ₹1,380-1,440 per (approximately $16.67-17.40) 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹330-335 (approximately $3.99-4.05) per kg, 80 carded weft at ₹1,450-1,490 (approximately $17.52-18) per 4.5 kg, 44/46 carded warp at ₹263-270 (approximately $3.18-3.26) per kg, 40/41 carded warp at ₹258-263 (approximately $3.12-3.18) per kg, 40/41 combed warp at ₹294-300 (approximately $3.55-3.62) and 30/32 carded warp at ₹253-258 (approximately $3.06-3.12) per kg, as per TexPro.

After last week's gains, cotton prices experienced a bearish tone. A decline in ICE cotton prices influenced the market, with traders noting that reduced seed cotton arrivals supported prices, leading to a disparity at the ginning level. Ginners are facing a disparity of ₹2,500-3,500 (approximately $30.20-42.28) per candy of 356 kg. With farmers holding back seed cotton for higher prices, the price for seed cotton is hovering between ₹8,000-8,500 (approximately $96.64-102.68) per quintal of 100 kg. Cotton arrivals in Gujarat have nearly halved to 16,000-17,000 bales of 170 kg, with all-India arrivals estimated at 60,000-70,000 bales. The benchmark Shankar-6 cotton in Gujarat was quoted at ₹61,500-62,000 (approximately $742.94-748.98) per candy of 356 kg, while southern mills aimed to purchase cotton at ₹62,500-63,000 (approximately $755.02-761.06) per candy.

ALCHEMPro News Desk (KUL)