Cotton yarn prices stable in south India despite rise in mill rates

Should the market receive support from the demand side, yarn prices might improve by ₹2-3 per kg. However, as it currently stands, there has been no upward trend in the market. Traders have also pointed out that the yarn trade fair in China has failed to buoy spirits due to the fact that Chinese buyers have requested prices that are lower than domestic rates. Consequently, Indian spinners have been unable to book significant orders from the fair. 

In Tiruppur, the cotton yarn market has maintained a steady trend due to slower demand from the weaving industry. Spinners based in Tamil Nadu have raised mill rates by ₹5-7 per kg, but the market has not reacted swiftly. A trader from Tiruppur, speaking to Fibre2Fashion, noted, "If the market gets support from buying activity within the weaving industry, yarn prices may increase by ₹2-3 per kg. Nonetheless, no positive indications have emerged from China's yarn fair. Chinese buyers have expressed willingness to buy Indian yarn, but their offers have been at a rate of $0.10 (₹7-8) per kg lower than domestic prices, making it an unattractive proposition for most spinners.” 

Prices in the Tiruppur market were noted as 30 count combed cotton yarn ₹258-265 per kg (excluding GST), 34 count combed cotton yarn ₹268-275 per kg, 40 count combed cotton yarn ₹275-285 per kg, 30 count carded cotton yarn ₹235-240 per kg, 34 count carded cotton yarn ₹240-245 per kg and 40 count carded cotton yarn ₹246-253 per kg, according to Fibre2Fashion's market insight tool TexPro. 

In Mumbai, the market has shown a bearish tone in cotton yarn trading. Prices have remained at previous levels, as the weaving industry has shown little interest in making fresh purchases. This is due to their experiencing slower demand for fabric from the garment industry. A trader from the Mumbai market told Fibre2Fashion, "There is no positive sign in the market. Cotton yarn prices have remained stable owing to weaker demand. Spinning mills are incurring losses due to the recent rise in cotton prices." 

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,420-1,440 and ₹1,312-1,355 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹322-328 per kg, 80 carded weft ₹1,305-1,330 per 4.5 kg, 44/46 carded warp ₹255-260 per kg, 40/41 carded warp ₹240-244 per kg and 40/41 combed warp ₹268-272 per kg, as per TexPro. 

In Gujarat, cotton prices have seen a gain of ₹200-300 per candy of 356 kg, following an increase in mill rates for cotton yarn. However, spinning mills have been reluctant to make new purchases as they are wary of a bearish tone in the demand for fabric. The Gujarat market expects to see the arrival of cotton in approximately one and a half months, although early arrivals from irrigated areas of the state may hit the market by the end of September. In the Gujarat market, Shankar-6 cotton has been quoted at prices ranging between ₹61,000-61,500 per candy. Cotton arrivals have been around 8,000 bales of 170 kg in Gujarat, and all-India arrivals have been estimated at 22,000 bales. 

ALCHEMPro News Desk (KUL)