South India sees stable cotton yarn prices amidst slow demand

Mumbai saw limited buying due to a liquidity crunch in the downstream value chain. Buyers are more engaged in cash planning rather than purchasing cotton yarn. A trader from the Mumbai market told Fibre2Fashion, "The payment crisis may continue to dampen the cotton yarn trade for the next few weeks. Power looms operators, mainly small and micro enterprises (SME), need to purchase cotton yarn on advance payment but they must provide credit to fabric buyers. They will receive payment in the last month of the current fiscal (March) when the cash problem is expected to improve."

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,440-1,480 (approximately $16.47-$16.93) and ₹1,330-1,370 per 5 kg (approximately $15.21-$16.67) (excluding GST), respectively. Other prices include 60 combed warp at ₹328-332 (approximately $3.75-$3.80) per kg, 80 carded weft at ₹1,440-1,500 (approximately $16.67-$17.16) per 4.5 kg, 44/46 carded warp at ₹262-272 (approximately $3.00-$3.11) per kg, 40/41 carded warp at ₹271-274 (approximately $3.10-$3.13) per kg and 40/41 combed warp at ₹278-284 (approximately $3.18-3.25) per kg, according to trade sources.

The Tiruppur market also saw stability in cotton yarn trade. There was no significant movement in the prices. According to market sources, demand from the weaving/knitting industry is not encouraging. Mills are trying to hold cotton yarn prices at current levels.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (approximately $2.92-3.01) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.02-3.10) per kg, 40 count combed cotton yarn at ₹276-288 (approximately $3.16-3.29) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.70-2.76) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.74-2.80) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.85-2.89) per kg.

In Gujarat, cotton prices were slightly higher due to continued procurement by the Cotton Corporation of India (CCI). Its prices gained by ₹300-500 per candy of 356 kg. Traders said that the CCI is still purchasing seed cotton from farmers; therefore, its prices are not coming down. Ginners are trying to purchase seed cotton to build up enough stock for the coming months. Recent gains in ICE cotton also supported domestic cotton yarn prices. Spinning mills have also increased cotton buying after they found good prospects in the export market after a steep fall in the Indian currency against the dollar.

Cotton arrival was estimated at 26,000-38,000 bales of 170 kg in Gujarat and 140,000-145,000 bales in the country. The benchmark Shankar-6 cotton was quoted between ₹53,000-53,500 (approximately $606.17-$611.88) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,000-54,300 (approximately $617.60-$621.03) per candy. Seed cotton (Kapas) was traded at around ₹7,450-7,600 (approximately $85.21-$86.92) per quintal.

Disclaimer: The prices in this article are based on market sources and hence, 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)