South India notes slightly better cotton yarn buying after steep fall

In Tiruppur market, cotton yarn lost ₹30-40 per kg as mills have reduced their selling prices in the beginning of this month. Mills are adjusting yarn prices after fall in the price of the natural fibre. The market noticed slight improvement in demand. A trader from Tiruppur told Fibre2Fashion, “Demand slightly improved as lower prices attracted buyers. However, improvement in demand was very little. Buyers were not still confident.” Traders feel that downward trend may continue as higher arrival of cotton will drive prices downside. But lowering in prices are attracting weaving industry for new purchases. Today, 30 count combed cotton yarn was traded at ₹308-315 per kg (GST extra), 34 count combed at ₹315-320 per kg and 40 count combed at ₹330-340 per kg in Tiruppur market. Cotton yarn of 30 count carded was sold at ₹285-290 per kg, 34 count carded at ₹290-295 per kg and 40 count carded at ₹300-310 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Mumbai market noted a further drop of ₹5-10 per kg in cotton yarn prices. Lower price of cotton led to ease in yarn prices. Demand was not supportive in cotton yarn market. Traders expect that lower prices may attract buyers, but the market will have to wait longer. A trader from Mumbai market told Fibre2Fashion, “Prices are likely to fall further in the coming weeks as cotton arrival will pick up. Trade may improve as lower prices will appeal to the buyers.” 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,600-1,640 and ₹1,540-1,600 per 5 kg (GST extra) respectively. 60 count combed cotton warp yarn was priced at ₹365-375 per kg. 80 carded (weft) cotton yarn was sold at ₹1,540-1,580 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹310-315 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹288-295 per kg. 40/41 count combed yarn (warp) was priced at ₹315-325 per kg, as per TexPro.

In Gujarat, daily cotton arrival dropped to 9,000-10,000 bales of 170 kg each. Cotton prices remained almost steady in the last couple of days. The benchmark Shankar-6 cotton variety was traded at ₹69,000-71,000 per candy of 356 kg in spot market of Gujarat. According to a market source, ginning mills are facing disparity due to costlier seed cotton amid lower arrival. Seed cotton was hovering at ₹1,750-1,800 per maund of 20 kg for average quality. Spinning mills remained very cautious for cotton purchases as they expect further price fall in the near future.

ALCHEMPro News Desk (KUL)