Payment default worries south Indian yarn traders

A trader from Mumbai told Fibre2Fashion, “There is no buyer in the market even at lower prices. Some weaving units defaulted in payment which created an ambience of fear. Yarn dealers are reluctant to sell on credit due to payment worries and cash crisis.”

In Mumbai market, cotton yarn prices decreased by up to ₹10 per kg. 60 count carded cotton yarn of warp and weft varieties were traded at ₹2,060-2,110 and ₹1,950-2,010 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,925-1,960 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹2,070-2,110 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹365-370 per kg. 40 count combed yarn (warp) was priced at ₹410-430 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Traders from Tiruppur said that buyers are absent from the market as current disparity in prices of textile value chain is discouraging new buying. However, spinning mills are not interested to lower yarn prices in southern markets as their higher cost of production does not permit them. The entire market of south India remained under pressure due to weaker demand. As a result, cotton yarn prices in Tiruppur remained steady.

In Tiruppur market, 30 count combed cotton yarn was traded at ₹405-410 per kg (GST extra), 34 count combed at ₹420-425 per kg and 40 count combed at ₹435-440 per kg. Cotton yarn of 30 count carded was sold at ₹370-375 per kg, 34 count carded at ₹380-385 per kg and 40 count carded at ₹390-395 per kg, as per TexPro.

In Gujarat, cotton prices lowered by ₹2,000-2,500 to ₹98,000-104,000 per candy of 356 kg. According to the traders, many spinning mills have stopped buying cotton as they have shifted to alternative yarn production. Downtrend in ICE cotton also dragged domestic prices.

ALCHEMPro News Desk (KUL)