South Indian cotton yarn faces low demand, mills yet to decide rates

The Mumbai market noted stability in most counts and varieties of cotton yarn, as the market did not see any improvement in buying today. A trader from Mumbai told Fibre2Fashion, "The market did not see encouraging demand from buyers this month. Several counts and varieties were traded stably as mills did not raise their mill rates yet. Power loom owners are still producing fabric as per present orders. They are avoiding production for stocking purposes.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,375-1,420 (approximately $16.88-$17.47) and ₹1,220-1,300 per 5 kg (approximately $15.32-$16.28) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-327 (approximately $3.94-$3.99) per kg, 80 carded weft at ₹1,300-1,340 (approximately $16.28-$16.76) per 4.5 kg, 44/46 carded warp at ₹250-256 (approximately $3.08-$3.14) per kg, 40/41 carded warp at ₹247-255 (approximately $3.02-$3.11) per kg and 40/41 combed warp at ₹285-290 (approximately $3.47-$3.53) per kg, according to trade sources.

The Tiruppur market also noticed slow demand from the downstream industry. Cotton yarn prices remained at previous levels. Trade sources said that mills have yet to decide on cotton yarn mill rates after the MSP hike last week. The mills are facing pressure to sell their stocks to manage their financials. They preferred sales instead of higher margins in the current scenario.

In Tiruppur, knitting cotton yarn prices were noted on Thursday as 30 count combed cotton yarn at ₹264-270 (approximately $3.20-3.27) per kg (excluding GST), 34 count combed cotton yarn at ₹274-279 (approximately $3.30-3.36) per kg, 40 count combed cotton yarn at ₹285-290 (approximately $3.45-3.53) per kg, 30 count carded cotton yarn at ₹239-246 (approximately $2.87-2.92) per kg, 34 count carded cotton yarn at ₹244-249 (approximately $2.87-2.93) per kg and 40 count carded cotton yarn at ₹249-255 (approximately $3.00-3.06) per kg.

In Gujarat, cotton prices were steady despite lower arrivals. Traders said that mills are not getting cotton as per their requirements. Farmers are not bringing seed cotton to the markets due to rain in various regions of the state.

Cotton arrivals were recorded at 5,000-6,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 24,000-25,000 bales. The benchmark Shankar-6 cotton was quoted between ₹58,000-58,500 (approximately $695.59-$701.59) per candy of 356 kg, while southern mills were looking to buy cotton at ₹59,000-59,500 (approximately $708.58-$713.58) per candy.

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)