Sluggish trend in south India cotton yarn; mills increase rates

Market experts said that spinners increased the mill rate of yarn prices due to costlier cotton. But there was no rush of buyers to book new deals before the increase in prices. Cotton yarn prices are reportedly facing tight money. Few traders felt that the upcoming election was also causing tight cash flow.

The Tiruppur market noted steadiness in cotton yarn prices. A trader from the Tiruppur market told Fibre2Fashion, “Spinners have increased mill rates of cotton yarn after a recent hike in the natural fibre. However, we have to wait until next week to see the response from buyers. In anticipation of a price rise, the consumer industry was not in a hurry to buy yarn before the rise in prices.”

In Tiruppur market, cotton yarn prices were noted as 30 count combed cotton yarn at ₹260-265 per kg (excluding GST), 34 count combed cotton yarn at ₹267-272 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹234-239 per kg, 34 count carded cotton yarn at ₹240-245 per kg and 40 count carded cotton yarn at ₹248-254 per kg, according to Fibre2Fashion's market insight tool TexPro.

A trader from Mumbai told Fibre2Fashion, “Cotton yarn prices are yet to see the impact of the increase in the mill rate. Although the market prices of a few counts and varieties have noted an upward trend. Liquidity issues were also a cause of concern for buyers. Buyers preferred to hold their buying for stock building. The new payment rule discouraged buyers due to the time limit for payment to micro and small enterprises.”

In Mumbai, all the counts and varieties of cotton yarn except 60 counts witnessed an upward trend. These prices came down by ₹3-5 per kg in various counts and varieties. The 60 carded yarn of warp and weft varieties were sold at ₹1,435-1,460 and ₹1,330-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹322-328 per kg, 80 carded weft at ₹1,430-1,470 per 4.5 kg, 44/46 carded warp at ₹257-265 per kg, 40/41 carded warp at ₹248-254 per kg, 40/41 combed warp at ₹270-274 and 30/32 carded warp at ₹238-243 per kg, as per TexPro.

Cotton prices slightly eased after a steep rise since last week in Gujarat because ICE cotton prices crossed a mark of 100 cents per pound. The natural fibre was traded at ₹2,500-2,800 per candy of 356 kg, higher than the price of last week. Traders said that there is no scope for ease in cotton prices as the arrival season is going to end. Higher global cotton prices may further support domestic prices. Cotton arrival was 28,000-30,000 bales of 170 kg in Gujarat. All India arrival was estimated at 100,000-110,000 bales. In Gujarat, benchmark Shankar-6 cotton was quoted between ₹61,000-61,500 per candy of 356 kg. Southern mills intended to buy cotton at ₹62,000-62,500 per candy.

ALCHEMPro News Desk (KUL)