Cotton yarn stable in south India, poor demand expected till year-end

In Mumbai, cotton yarn prices were hovering at previous levels as demand was weak. A trader from the Mumbai market told Fibre2Fashion, "Cotton yarn prices were maintained at the previous level. Demand from the weaving industry was average. Mills were unable to raise yarn prices after the increase in cotton." He said that there was little hope for strong festival demand because of huge inventories at every level in the entire value chain. 

In Mumbai, 60 count carded yarn of warp and weft varieties was sold at ₹1,420-1,445 and ₹1,290-1,330 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹325-330 per kg, 80 carded weft at ₹1,325-1,350 per 4.5 kg, 44/46 carded warp at ₹254-260 per kg, 40/41 carded warp at ₹242-246 per kg and 40/41 combed warp at ₹270-275 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market also noted a steady trend in cotton yarn prices. Demand from the downstream industry was not encouraging. A trader from Tiruppur told Fibre2Fashion, "Spinning mills were unable to raise yarn prices with the increase in cotton. Garment manufacturing units were running with lower capacity as they don't expect much buying for the coming festival season." 

Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹255-262 per kg (excluding GST), 34 count combed cotton yarn at ₹265-272 per kg, 40 count combed cotton yarn at ₹275-282 per kg, 30 count carded cotton yarn at ₹230-236 per kg, 34 count carded cotton yarn at ₹238-245 per kg, and 40 count carded cotton yarn at ₹246-252 per kg, as per TexPro. 

In Gujarat, cotton prices breached a level of ₹60,000 per candy of 356 kg, and the prices gained ₹800-1,000 per candy due to stronger ICE cotton and domestic fundamentals. According to traders, cotton stock was limited for domestic consumption. Meanwhile, exporters were also aggressively buying the natural fibre. The higher landed cost of recently imported cotton was also a supportive factor. There were expectations that cotton prices might rise further despite slow demand from the garment industry. Shankar-6 cotton was quoted between ₹60,000-60,500 per candy. Cotton arrival was around 10,000 bales of 170 kg in Gujarat. All India arrival was estimated at 20,000-22,000 bales of 170 kg. 

ALCHEMPro News Desk (KUL)