South Indian cotton yarn market steady amid festive season, low demand

The bearish tone continued in south India's cotton yarn market amid thin trade. Prices hovered at previous levels in Tiruppur and Mumbai markets. Traders anticipate that the cotton yarn trade will remain range-bound in the next week due to the Pongal and Makar Sankranti celebrations. Workers have gone on holiday for the festival, and export demand is also unlikely to improve immediately. 

"The fabric market did not show any sign of improvement in demand. The slow lifting of fabric was a discouraging factor for yarn trade. Buyers were silent because of the upcoming festivals. The market can see improvement only after one week,” Bharat Shah, a trader from Ichalkaranji (Maharashtra), told Fibre2Fashion. 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,425-1,450 and ₹1,310-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹318-325 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-263 per kg, 40/41 carded warp at ₹242-248 per kg, 40/41 combed warp at ₹264-268 and 30/32 carded warp at ₹232-237 per kg, according to Fibre2Fashion's market insight tool TexPro. 

"Pongal is a very important festival in Tamil Nadu and other southern states. Workers will return to their factories after one week. The market expects movement in cotton yarn after 20 January,” a trader from Tiruppur told F2F. 

In Tiruppur, cotton yarn prices were noted as 30 count combed cotton yarn at ₹258-262 per kg (excluding GST), 34 count combed cotton yarn at ₹268-273 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹237-242 per kg and 40 count carded cotton yarn at ₹240-246 per kg, as per TexPro. 

Cotton prices in Gujarat eased down by ₹100-200 per candy of 356 kg. Slow demand from spinning mills and a decline in domestic futures have dampened sentiments in the spot cotton trade. According to traders, cotton prices eased slightly after a steady trend for the last week. A decline of ₹100-200 per candy is negligible in cotton prices. In the Gujarat market, Shankar-6 cotton was quoted between ₹54,800-55,000 per candy of 356 kg. Southern mills intended to buy cotton at ₹55,700-56,200 per candy. South mill delivery cotton prices were quite higher due to the quality consciousness of spinners. The arrival was 40,000 bales of 170 kg in Gujarat, with an all-India arrival estimated at 155,000-160,000 bales of 170 kg. 

ALCHEMPro News Desk (KUL)