Payment rule impact south India's cotton yarn market, prices stable

In the Tiruppur market, a bearish sentiment prevails in the cotton yarn trade, yet prices are steady. A Tiruppur market trader told Fibre2Fashion, "The market hasn't seen summer demand yet. The new payment rule is a major concern for the consumer industry and stockists. Some mills are trying to attract buyers with additional discounts."

Cotton yarn prices in the Tiruppur market are as follows: 30 count combed cotton yarn at ₹275-282 (approximately $3.32-3.40) per kg, 34 count combed cotton yarn at ₹280-288 (approximately $3.38-3.48) per kg, 40 count combed cotton yarn at ₹293-303 (approximately $3.54-3.66) per kg, 30 count carded cotton yarn at ₹245-253 (approximately $2.96-3.05) per kg, 34 count carded cotton yarn at ₹254-260 (approximately $3.06-3.14) per kg, and 40 count carded cotton yarn at ₹260-268 (approximately $3.14-3.23) per kg, as per Fibre2Fashion's market insight tool TexPro.

The Mumbai market also shows stability in cotton yarn prices amidst slow demand. Gujarat mills have decreased cotton yarn prices to attract buyers. A Mumbai trader mentioned to Fibre2Fashion, "Cotton yarn demand is unlikely to improve this month. Buyers are hesitant to assume any payment liabilities. The government has not provided relief in the payment rule, which is a major market concern."

In Mumbai, prices include 60 carded yarn of warp and weft varieties at ₹1,480-1,510 (approximately $17.88-18.24) and ₹1,380-1,440 (approximately $16.67-17.40) per 5 kg, respectively. Additional prices are 60 combed warp at ₹330-335 (approximately $3.99-4.05) per kg, 80 carded weft at ₹1,450-1,490 (approximately $17.52-18.00) per 4.5 kg, 44/46 carded warp at ₹263-270 (approximately $3.18-3.26) per kg, 40/41 carded warp at ₹258-263 (approximately $3.12-3.18) per kg, 40/41 combed warp at ₹294-300 (approximately $3.55-3.62) per kg, and 30/32 carded warp at ₹253-258 (approximately $3.06-3.12) per kg, according to TexPro.

Cotton prices are experiencing a sluggish trend due to a decrease in ICE cotton and spinning mill demand. Traders have noted limited demand in the last fortnight of this fiscal. The new fiscal begins on April 1. Prices have declined by ₹200-300 per candy of 356 kg. Cotton arrivals in Gujarat were recorded at 18,000-20,000 bales of 170 kg, with all India arrivals estimated at 75,000-80,000 bales. In Gujarat, benchmark Shankar-6 cotton was quoted between ₹61,000-61,500 (approximately $734.85-742.11) per candy of 356 kg. Southern mills are aiming to purchase cotton at ₹62,000-62,500 (approximately $748.14-754.17) per candy.

Disclaimer: The prices in this article are for guidance only. 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)