South Indian cotton yarn stable; sentiments weak amid cash crunch

The cotton yarn trade in the Mumbai market was slow as the city anticipates voting on May 20. Prices remained stable in the market. A trader from Mumbai told Fibre2Fashion, "Cash crunch and labour shortage were key reasons for the slow demand for cotton yarn. Power looms are running at less than 50 per cent capacity due to the labour shortage." However, the market may see improved buying after June.

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,410-1,460 (approximately $16.89-$17.48) and ₹1,290-1,375 per 5 kg (approximately $15.45-$16.47) (excluding GST), respectively. Other prices include 60 combed warp at ₹330-334 (approximately $3.95-$4.00) per kg, 80 carded weft at ₹1,360-1,400 (approximately $16.29-$16.76) per 4.5 kg, 44/46 carded warp at ₹257-262 (approximately $3.08-$3.14) per kg, 40/41 carded warp at ₹252-260 (approximately $3.02-$3.11) per kg, 40/41 combed warp at ₹290-295 (approximately $3.47-$3.53) per kg, and 30/32 carded warp at ₹245-247 (approximately $2.93-$2.96) per kg, according to trade sources.

The Tiruppur market also noted steadiness in cotton yarn prices. However, buying from fabric manufacturers was very slow. Trade sources said that the market is facing tight payment conditions due to heavy stocks in the textile value chain.

In Tiruppur, knitting cotton yarn prices were noted on Thursday as: 30 count combed cotton yarn at ₹268-273 (approximately $3.21-3.27) per kg (excluding GST), 34 count combed cotton yarn at ₹277-282 (approximately $3.32-3.38) per kg, 40 count combed cotton yarn at ₹290-295 (approximately $3.47-3.53) per kg, 30 count carded cotton yarn at ₹241-245 (approximately $2.89-2.93) per kg, 34 count carded cotton yarn at ₹247-251 (approximately $2.96-3.01) per kg and 40 count carded cotton yarn at ₹253-258 (approximately $3.03-3.09) per kg.

In Gujarat, cotton prices were steady amid slow buying from spinning mills. Traders said that cotton prices are facing sluggish demand in the current scenario. However, the end of the arrival season may push up cotton prices. Spinning mills will need to buy cotton to meet the demand for cotton yarn in the coming months. Cotton arrivals were recorded at 10,000-12,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 32,000-35,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹57,000-57,500 (approximately $682.60-$688.59) per candy of 356 kg, while southern mills were looking to buy cotton at ₹57,500-58,000 (approximately $688.59-$694.58) 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)