Steady cotton yarn prices in south India amid cyclone Biparjoy fears

In Mumbai, cotton yarn prices stayed at their previous levels. The market sentiment remained bearish due to low demand from the weaving industry. A trader from the Mumbai market told Fibre2Fashion, “Cotton yarn may remain bearish for the next few weeks. We may only see an improvement in demand in July when power loom workers return from their summer break. Power loom owners will have to purchase yarn for production.” 

Trade sources mentioned that the market was in a ‘wait and watch’ mode ahead of the cyclone. Buyers were hesitant to make new purchases, as the natural calamity could disrupt regular activities. Gujarat has already seen disruptions in trade and industry. The local administration has banned various activities as a precaution. Even though the cyclone has weakened, it could still cause severe damage. 

In Mumbai, 60 count carded cotton yarn of warp and weft varieties was sold at ₹1,470-1,500 and ₹1,340-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹345-352 per kg, 80 carded (weft) cotton yarn ₹1,420-1,450 per 4.5 kg, 44/46 count carded cotton yarn (warp) ₹264-272 per kg, 40/41 count carded cotton yarn (warp) ₹256-264 per kg and 40/41 count combed yarn (warp) ₹280-287 per kg, according to Fibre2Fashion's market insight tool TexPro. 

In Tiruppur, the cotton yarn trade trend was stable. However, the low demand from the downstream industry was discouraging for the cotton yarn trade. The bearish trend put pressure on spinning mills as buyers were silent ahead of the cyclone. A trader from Tiruppur told F2F, “The cyclone could only bring disruption and damage. Most likely, spinners may face supply problems due to impacts on transportation services.” 

Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹264-270 per kg (excluding GST), 34 count combed cotton yarn at ₹275-280 per kg, 40 count combed cotton yarn at ₹285-292 per kg, 30 count carded cotton yarn at ₹240-245 per kg, 34 count carded cotton yarn at ₹247-252 per kg and 40 count carded cotton yarn at ₹250-257 per kg, as per TexPro. 

In Gujarat, the cotton market witnessed limited trading activities. The prices remained steady for the last couple of days. Demand from the weaving industry was slow. A trader from Gujarat stated that there was negligible arrival of cotton in the markets due to the local administration's ban on various activities. Cotton was traded at ₹58,000-58,500 per candy of 356 kg. 

ALCHEMPro News Desk (KUL)