South Indian cotton yarn market sees limited trade, buyers stay away

In Tiruppur, demand was sluggish, yet prices remained consistent. A trader from the Tiruppur market shared with Fibre2Fashion, "Typically, buyers are inactive in the last fortnight of a fiscal. However, they usually purchase cotton yarn for their short-term requirements. This year, the new payment regulation also negatively affected market sentiment. Had the government introduced the payment rule gradually, the market demand for cotton yarn would have been better during this period."

Cotton yarn prices in the Tiruppur market were as follows: 30 count combed cotton yarn at ₹275-282 (approximately $3.32-3.40) per kg (excluding GST), 34 count combed cotton yarn at ₹280-288 (approximately $3.38-3.48) per kg, 40 count combed cotton yarn at ₹293-303 (approximately $3.54-3.66) per kg, 30 count carded cotton yarn at ₹245-253 (approximately $2.96-3.05) per kg, 34 count carded cotton yarn at ₹254-260 (approximately $3.06-3.14) per kg, and 40 count carded cotton yarn at ₹260-268 (approximately $3.14-3.23) per kg, according to Fibre2Fashion's market insight tool TexPro.

The Mumbai market also experienced a bearish trend, with stable cotton yarn prices. A Mumbai trader told Fibre2Fashion, "Buyers were preoccupied with managing their accounts. They were more concerned about payment delays than stock levels. The market is unlikely to improve until April 2024."

In Mumbai, prices for 60 carded yarn of warp and weft varieties were ₹1,480-1,510 (approximately $17.88-18.24) and ₹1,380-1,440 (approximately $16.67-17.40) per 5 kg (excluding GST), respectively. Other prices included 60 combed warp at ₹330-335 (approximately $3.99-4.05) per kg, 80 carded weft at ₹1,450-1,490 (approximately $17.52-18.00) per 4.5 kg, 44/46 carded warp at ₹263-270 (approximately $3.18-3.26) per kg, 40/41 carded warp at ₹258-263 (approximately $3.12-3.18) per kg, 40/41 combed warp at ₹294-300 (approximately $3.55-3.62) per kg, and 30/32 carded warp at ₹253-258 (approximately $3.06-3.12) per kg, as reported by TexPro.

In Gujarat, cotton prices decreased by ₹500-1,000 per candy of 356 kg since last Tuesday. The downward trend in ICE cotton prices reduced buying interest in the local market. Some traders believed that the Cotton Association of India's (CAI) higher cotton production estimates affected market sentiment, while others argued that a tight cotton balance sheet offset the impact of increased production estimates. Cotton arrivals in Gujarat were recorded at 24,000-25,000 bales of 170 kg, with an all-India estimate of 75,000-77,000 bales. In Gujarat, the benchmark Shankar-6 cotton was priced between ₹60,000-60,500 (approximately $719.50-725.49) per candy of 356 kg. Southern mills were inclined to purchase cotton at ₹61,500-62,000 (approximately $737.48-743.48) per candy.

ALCHEMPro News Desk (KUL)