South Indian cotton yarn bearish, Bangladesh export concerns ease

The Mumbai market witnessed a slight fall in cotton yarn prices, with mills and traders offering lower prices to attract buyers. Cotton yarn prices eased by ₹2 per kg. A trader from the Mumbai market told Fibre2Fashion, "Buyers are not in a hurry to purchase cotton yarn. They are only interested if they can get lower prices. Power loom owners have reduced fabric production due to uncertainty in demand from the garment industry. There is little hope for an improvement in demand before Diwali."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,400-1,440 (approximately $16.67-$17.15) and ₹1,330-1,380 per 5 kg (approximately $15.84-$16.44) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-330 (approximately $3.84-$3.93) per kg, 80 carded weft at ₹1,340-1,380 (approximately $15.96-$16.44) per 4.5 kg, 44/46 carded warp at ₹250-260 (approximately $2.98-$3.10) per kg, 40/41 carded warp at ₹248-258 (approximately $2.95-$3.07) per kg and 40/41 combed warp at ₹276-280 (approximately $3.29-3.33) per kg, according to trade sources.

Tiruppur also saw slow demand after the festival holiday. Cotton yarn was traded at previous levels amid sluggish demand. Traders noted that mills and traders are struggling to maintain prices at the current levels. Demand may pick up after Diwali, but prices are expected to remain stable. Nonetheless, textile exports to Bangladeshi buyers are seen as positive news for the market. Shipments are likely to increase only when exporters gain confidence in receiving timely payments from their buyers.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹266-274 (approximately $3.17-3.26) per kg (excluding GST), 34 count combed cotton yarn at ₹275-282 (approximately $3.28-3.36) per kg, 40 count combed cotton yarn at ₹290-296 (approximately $3.45-3.53) per kg, 30 count carded cotton yarn at ₹242-249 (approximately $2.88-2.97) per kg, 34 count carded cotton yarn at ₹247-251 (approximately $2.94-2.99) per kg and 40 count carded cotton yarn at ₹252-257 (approximately $3.00-3.06) per kg.

In Gujarat, cotton prices remained stable amid slow buying from spinning mills. The increasing arrival of cotton was also putting pressure on prices. Traders indicated that uncertainty regarding demand from the downstream industry, along with rising cotton arrivals, made spinners cautious about fresh buying. Mills need to purchase cotton, but they are not rushing into it.

Cotton arrivals were recorded at around 14,000-16,000 bales of 170 kg, with new cotton in negligible quantities. All-India arrivals were estimated at 47,000-52,000 bales. The benchmark Shankar-6 cotton from last season was quoted between ₹56,000-56,300 (approximately $666.41-$669.98) per candy of 356 kg, while southern mills were looking to buy cotton at ₹56,500-57,000 (approximately $672.36-$678.31) per candy. New cotton was traded at ₹55,500-56,000 (approximately $660.46-$666.41) per candy with a maximum moisture content of 10 per cent.

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)