New year brings hope in south India, cotton yarn prices gain in Mumbai

Mumbai market witnessed increase of ₹2-5 per kg in few varieties and counts of cotton yarn. The market saw slightly higher demand for selective varieties and counts. A trader from Mumbai told Fibre2Fashion, “Spinning mills were trying to increase cotton yarn prices. They had raised prices ₹2-4 per kg for most of counts. But they had to decrease prices for few counts. However, there was confidence for revival of demand.”

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,425-1,450 and ₹1,310-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹318-325 per kg, 80 carded weft ₹1,400-1,440 per 4.5 kg, 44/46 carded warp ₹254-263 per kg, 40/41 carded warp ₹242-248 per kg, 40/41 combed warp ₹264-268 and 30/32 carded warp ₹232-237 per kg, according to Fibre2Fashion's market insight tool TexPro.

Cotton yarn prices remained steady in Tiruppur market. However, there was expectation for higher demand of cotton yarn. Export demand will also increase in next few weeks. A trader from Tiruppur told F2F, “Hope for revival of demand lies on summer demand. Cotton garment receives better demand in summer season because of its natural virtue. Every year, summer garment manufacturing picks up in December and January. Although December did not see much improvement in demand, January may witness good seasonal demand.

In Tiruppur market, cotton yarn prices were noted as 30 count combed cotton yarn ₹258-262 per kg (excluding GST), 34 count combed cotton yarn ₹268-273 per kg, 40 count combed cotton yarn ₹280-284 per kg, 30 count carded cotton yarn ₹233-236 per kg, 34 count carded cotton yarn ₹237-242 per kg, and 40 count carded cotton yarn ₹240-246 per kg, as per TexPro.

Steadiness remained intact in cotton prices in Gujarat. The market was facing payment crisis as spinning mills were unable to make payment even after due date. Cotton prices remained at previous level in various markets of Gujarat. According to the traders, ginners are facing severe problem of payment because they have to pay to farmers in cash. Spinners delay payment due to slow demand from downstream industry. So, ginners preferred to sell cotton on cash or on shorter credit which was causing slow buying. However, mills from southern India were offering ₹100-200 per candy (356 kg) higher prices for cotton.

In Gujarat market, Shankar-6 cotton was quoted between ₹55,000-55,200 per candy of 356 kg. Southern mills were intended to buy cotton at ₹55,700-56,200 per candy. The arrival was 35,000 bales of 170 kg in Gujarat. All India arrival was estimated at 180,000-182,000 bales of 170 kg.

ALCHEMPro News Desk (KUL)