Cotton yarn prices steady in south India amid payment rule concerns

A trader from Mumbai told Fibre2Fashion, “Mills were trying to increase yarn prices. But they were facing slow demand from the domestic and export markets. Spinners were unable to pass on the recent rise in cotton prices. Meanwhile, buyers worried about the new payment rule. Liquidity crunch was also a cause of concern for the market.”In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,450-1,475 and ₹1,330-1,400 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹322-328 per kg, 80 carded weft at ₹1,420-1,460 per 4.5 kg, 44/46 carded warp at ₹257-265 per kg, 40/41 carded warp at ₹245-251 per kg, 40/41 combed warp at ₹267-271, and 30/32 carded warp at ₹235-240 per kg, according to Fibre2Fashion's market insight tool TexPro.

The Tiruppur market also noticed stability in cotton yarn prices. A trader from the Tiruppur market told F2F, “Yarn production costs increased after a steep increase in cotton prices. However, demand was not encouraging across the entire value chain of the textile industry. Payment rules also caused tight liquidity flow in the market. A sluggish trend may continue until the end of the current fiscal.”

In Tiruppur market, cotton yarn prices were noted as 30 count combed cotton yarn at ₹260-265 per kg (excluding GST), 34 count combed cotton yarn at ₹267-272 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹234-239 per kg, 34 count carded cotton yarn at ₹240-245 per kg and 40 count carded cotton yarn at ₹248-254 per kg, as per TexPro.

Cotton prices decreased by ₹200-300 per candy of 356 kg today as ICE cotton noticed a downward trend. Although the prices have seen gains since last Friday, traders said that mills and MNCs were cautious about fresh buying after a sluggish tone in the global market, despite strong demand in the recent past. Cotton arrival was 35,000-37,000 bales of 170 kg in Gujarat, with all-India arrival estimated at 130,000-135,000 bales. In Gujarat, benchmark Shankar-6 cotton was quoted between ₹58,000-58,400 per candy of 356 kg. Southern mills intended to buy cotton at ₹58,200-58,800 per candy.

ALCHEMPro News Desk (KUL)