Cotton yarn stable amid slow demand, indirect optimism from budget

The Mumbai market witnessed weak demand due to a liquidity crunch in the downstream value chain. Poor demand and a focus on clearing SME dues have reduced the buying of cotton yarn. A trader from the Mumbai market told Fibre2Fashion, “Although cotton yarn prices have remained stable, demand is really slow. It may not improve until the end of March this year. This is the same period when cotton yarn demand usually picks up for summer garmenting. It means that the consumer industry will stay ‘hand-to-mouth’ until March. Demand may pick up only after the current fiscal year.”

In Mumbai, 60-carded yarn of warp and weft varieties was traded at ₹1,440-1,480 (approximately $16.54-$17.00) and ₹1,370-1,420 per 5 kg (approximately $15.73-$16.31) (excluding GST), respectively. Other prices include 60-combed warp at ₹333-340 (approximately $3.82-$3.90) per kg, 80-carded weft at ₹1,440-1,500 (approximately $16.54-$17.23) per 4.5 kg, 44/46-carded warp at ₹262-272 (approximately $3.01-$3.12) per kg, 40/41-carded warp at ₹256-266 (approximately $2.94-$3.05) per kg, and 40/41-combed warp at ₹278-284 (approximately $3.19-$3.26) per kg, according to trade sources.

The Tiruppur market also saw stability in the cotton yarn trade, with no significant movement in prices. According to market sources, buyers are not interested in bulk deals as they prefer to purchase only for immediate requirements due to payment issues. Regarding budget provisions, traders feel that the absence of a negative direct impact is a positive move for cotton yarn. However, the tariff hike on knitting fabric may provide indirect support to cotton yarn, as such fabric is mainly produced from polyester, acrylic fibre, and yarn.

In Tiruppur, knitting cotton yarn prices were noted as follows: 30-count combed cotton yarn at ₹255-263 (approximately $2.93-$3.02) per kg (excluding GST), 34-count combed cotton yarn at ₹264-271 (approximately $3.03-$3.11) per kg, 40-count combed cotton yarn at ₹276-288 (approximately $3.17-$3.31) per kg, 30-count carded cotton yarn at ₹235-240 (approximately $2.70-$2.76) per kg, 34-count carded cotton yarn at ₹240-245 (approximately $2.76-$2.81) per kg, and 40-count carded cotton yarn at ₹248-253 (approximately $2.85-$2.91) per kg.

In Gujarat, cotton prices further eased by ₹300-500 per candy of 356 kg. Traders said that weaker ICE cotton discouraged the domestic consumer industry, as they expected a decline in prices. Slower payment movement also dampened market sentiment. Lower buying from the Cotton Corporation of India (CCI) further weakened demand from spinning mills. Seed cotton prices eased by ₹50-60 per quintal following slow buying from CCI. Farmers are compelled to sell their crops to ginning mills in areas where CCI is reducing its purchases.

Cotton arrival was estimated to 26,000-38,000 bales of 170 kg in Gujarat and 140,000-145,000 bales in the country. The benchmark Shankar-6 cotton was quoted between ₹52,700-53,000 (approximately $605.20-$608.65) per candy of 356 kg, while southern mills were looking to buy cotton at ₹53,700-54,000 (approximately $616.68-$620.13) per candy. Multinational companies are looking to buying cotton at around ₹52,500 (approximately $602.90) per candy. Seed cotton (Kapas) was traded at around ₹7,400-7,600 (approximately $84.98-$87.28) per quintal.

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)