Lower prices fail to attract cotton yarn buyers in south India

A trader from Mumbai told Fibre2Fashion, “Buyers were absent from the market as they are not getting queries from downstream industry. Monsoon season also dampened market sentiments.” According to sources, powerlooms in Ichalkaranji and Bhiwandi are producing fabrics in very limited quantity. They are selling fabrics from their stock, which was produced from yarn purchased at lower prices earlier.

In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,950-2,000 and ₹1,870-1,920 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,840-1,870 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹1,900-1,940 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹355-362 per kg. 40 count combed yarn (warp) was priced at ₹410-425 per kg.

Trade sources from Tiruppur said that demand from powerlooms and weavers has not improved despite fall in yarn prices. Lower demand caused for weak sentiments in the market. But traders and stockists are not keen to reduce prices further to clear their stocks. However, there was optimism of better demand next month, and production in the entire value chain is expected to pick up.

In Tiruppur market, 30 count combed cotton yarn was traded at ₹400-405 per kg (GST extra), 34 count combed at ₹420-425 per kg and 40 count combed at ₹430-435 per kg. Cotton yarn of 30 count carded was sold at ₹365-370 per kg, 34 count carded at ₹375-380 per kg and 40 count carded at ₹380-385 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In Gujarat, cotton prices witnessed improvement in prices. Traders said that spinning mills from southern India came ahead for buying as there will be little supply during the coming monsoon months. The price of benchmark Shankar-6 cotton variety improved by ₹1,000-1,500 per candy of 356 kg. The prices were ruling at ₹98,000-103,000 per candy.

ALCHEMPro News Desk (KUL)