South India sees mixed trend in cotton yarn, prices up in Tiruppur

The Tiruppur market saw an increase of ₹2-4 per kg after a mid-month hike by spinning mills, which raised cotton yarn prices on August 16, reflected in the market in the last couple of days. A trader from Tiruppur told Fibre2Fashion, “Mills have not only increased yarn prices but also cut production so they can increase prices by restricting supplies. Festival demand was limited, but prices rose due to lowered production and supplies from the mills.” 

Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹258-265 per kg (excluding GST), 34 count combed cotton yarn at ₹268-275 per kg, 40 count combed cotton yarn at ₹275-285 per kg, 30 count carded cotton yarn at ₹235-240 per kg, 34 count carded cotton yarn at ₹240-245 per kg and 40 count carded cotton yarn at ₹246-253 per kg, according to Fibre2Fashion's market insight tool TexPro. 

However, in the Mumbai market, cotton yarn prices remained stable for most varieties and counts. Mills faced slower demand due to weak buying of fabric from the garment industry. A trader from Mumbai told F2F, “There was no improvement in the demand for cotton yarn and downstream products such as fabric and garments before Ganesh Chaturthi, a festival considered very important for Mumbai. This indicates that the coming festival season will not boost demand for textile products. Any slightly higher demand can be met from the huge stocks that are lying with the manufacturers.” 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,420-1,440 and ₹1,312-1,355 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹322-328 per kg, 80 carded weft at ₹1,305-1,330 per 4.5 kg, 44/46 carded warp at ₹255-260 per kg, 40/41 carded warp at ₹240-244 per kg and 40/41 combed warp at ₹268-272 per kg, as per TexPro.  

In Gujarat, cotton prices remained steady after a decline last week. Traders were bullish about cotton prices, feeling that cotton availability was lower than consumption. Despite slower demand in the weaving and garment industries, spinning mills will have to buy cotton to maintain their production at minimum levels. A trader stated that spinning mills cannot stop production and therefore need this year's cotton for the next two months. Meanwhile, farmers will not bring their crop to market if prices go down. In the Gujarat market, Shankar-6 cotton was quoted between ₹60,500-61,200 per candy, and cotton arrival was around 7,000 bales of 170 kg in Gujarat, with an all-India arrival estimated at 20,000 bales. 

ALCHEMPro News Desk (KUL)