Strong sentiments prevail in south India's cotton yarn market

A trader from Mumbai told Fibre2Fashion, “Despite the steep rise in cotton prices, yarn prices did not find support from fabric manufacturers due to sluggish demand from garment manufacturers. Yarn prices could increase by only half of the increase seen in cotton prices. Buying was slower in fine count cotton yarn than in coarser counts.”

In Mumbai, all counts and varieties of cotton yarn except 60 counts witnessed an upward trend. These prices came down by ₹3-5 per kg in various counts and varieties. The 60 carded yarn of warp and weft varieties were sold at ₹1,435-1,460 and ₹1,330-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹322-328 per kg, 80 carded weft ₹1,430-1,470 per 4.5 kg, 44/46 carded warp ₹257-265 per kg, 40/41 carded warp ₹248-254 per kg, 40/41 combed warp ₹270-274, and 30/32 carded warp ₹238-243 per kg, according to Fibre2Fashion's market insight tool TexPro.

Tiruppur also noticed strong sentiments. Mills have increased effective prices of cotton yarn by cutting discounts as they wanted to pass on the rise in cotton prices. However, market prices were stable except for a few deals where buyers were eager to pay higher prices due to an urgent need. A trader from the Tiruppur market told F2F, “The market sentiments improved after the continued rise in cotton prices. Although demand from downstream industries was not very supportive, cotton yarn could see a steep rise if buying was stronger. Market prices of cotton yarn may continue to see better appreciation.”

In Tiruppur, cotton yarn prices were noted as 30 count combed cotton yarn at ₹260-265 per kg (excluding GST), 34 count combed cotton yarn at ₹267-272 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹234-239 per kg, 34 count carded cotton yarn at ₹240-245 per kg and 40 count carded cotton yarn at ₹248-254 per kg, as per TexPro.

Cotton prices saw further gains of ₹300-700 per candy of 356 kg today as local market prices were supported by a positive trend in global cotton prices. The country’s top spinning mills were aggressively buying cotton due to a fall in arrivals. Cotton arrivals reduced in Gujarat and the country at large. Cotton arrival was 28,000-30,000 bales of 170 kg in Gujarat. All India arrival was estimated at 100,000-110,000 bales. In Gujarat, benchmark Shankar-6 cotton was quoted between ₹58,100-58,500 per candy of 356 kg. Southern mills intended to buy cotton at ₹59,000-59,500 per candy.

ALCHEMPro News Desk (KUL)