Cotton yarn prices steady, slow trading ahead of elections in Mumbai

Cotton yarn prices have remained stable despite subdued demand. In Mumbai, prices were flat due to limited trading ahead of the elections. Traders noted that market participants are avoiding cash transactions before the May 20 vote. Demand is expected to remain slow, and trading thin, until after voting takes place in Mumbai and other textile hubs across Maharashtra and neighbouring states.

The Tiruppur market has also shown stability in cotton yarn prices, with the exception of a few varieties. Market experts indicate that both domestic and export demand for garments have been very sluggish. Consequently, the entire supply chain is experiencing insufficient buying. The current summer season has also failed to boost consumer demand for cotton garments.

The Mumbai market did not see significant movement in cotton yarn prices. Buyers were avoiding placing new purchase orders and transacting in cash. A trader from Mumbai informed Fibre2Fashion, "Increased vigilance to deter malpractices during elections has discouraged textile traders from trading in cash. The market is unlikely to see better buying before voting. Maharashtra will vote in four phases, including voting in Mumbai on May 20 in the fifth phase.”

In Mumbai, 60-carded yarn of warp and weft varieties were sold at ₹1,425-1,470 (approximately $17.10-$17.64) and ₹1,330-1,390 per 5 kg (approximately $15.96-$16.68) (excluding GST), respectively. Other prices include 60 combed warp at ₹332-337 (approximately $3.98-$4.04) per kg, 80-carded weft at ₹1,410-1,450 (approximately $16.92-$17.40) per 4.5 kg, 44/46-carded warp at ₹255-262 (approximately $3.06-$3.14) per kg, 40/41-carded warp at ₹260-265 (approximately $3.12-$3.18) per kg, 40/41 combed warp at ₹292-298 (approximately $3.50-$3.58) per kg, and 30/32-carded warp at ₹247-250 (approximately $2.96-$3.00) per kg, according to trade sources.

The Tiruppur market witnessed stability in cotton yarn prices except for 30 combed cotton yarn, which saw a decrease of ₹2 per kg. Mills have reduced their selling rate of cotton yarn by ₹5 per kg for coarse counts. However, they reduced the discount by ₹3 per kg. Therefore, the net reduction in cotton yarn of coarse counts was ₹2 per kg. According to trade sources, mills were trying to hold cotton yarn prices at the present level.

In Tiruppur, knitting cotton yarn prices were noted on Thursday as: 30 count combed cotton yarn at ₹268-273 (approximately $3.21-3.27) 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 $3.47-3.53) per kg, 30 count carded cotton yarn at ₹244-249 (approximately $2.92-2.98) per kg, 34 count carded cotton yarn at ₹251-255 (approximately $3.01-3.06) per kg and 40 count carded cotton yarn at ₹257-262 (approximately $3.08-3.14) per kg, as per market sources.

In Gujarat, cotton prices remained unchanged after fluctuations in the previous trading session. Traders said that Indian cotton has not reduced as much as ICE cotton has in the last couple of weeks. Although Indian cotton continued to have a bearish tone, it can find support from lower arrivals and steady consumption from spinning mills during the dry months of the current season, which will end in September. Cotton arrivals were recorded at 14,000-15,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 44,000-45,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹58,000-58,500 (approximately $695.06-$701.05) per candy of 356 kg, while southern mills were looking to buy cotton at ₹58,500-59,000 (approximately $701.05-$707.04) 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)