Cotton yarn prices down after Diwali in South India; traders hopeful

01 Nov '22

3 min read

Pic: Shutterstock.com

South India’s cotton yarn prices decreased by ₹5-12 per kg after Diwali as demand remained weak amid seasonal decline in cotton prices. Buying activity by buyers in the textile value chain is limited, which is further dampening market sentiments. However, traders expect seasonal buying to pick soon as stocking is essential during cotton arrival.

The Mumbai market witnessed a downward trend and cotton yarn prices lost ₹5-12 per kg since Diwali. Reduced cotton prices and muted buying from mills are the causes of concern for the yarn market. Industrial and trading activities in many parts of Gujarat are still slow due to the extended Diwali holidays. It is also dampening the sentiments in the yarn market in the western parts of the country. “Buyers remained silent even after Diwali. Slower demand from downstream industry and liquidity crunch are discouraging buyers. The market will see improved buying only when cotton and yarn prices stabilise,” a trader from Mumbai market told Fibre2Fashion.

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,620-1,650 and ₹1,530-1,550 per 5 kg (GST extra) respectively. 60 combed warp was priced at ₹350-355 per kg. 80 carded (weft) cotton yarn was sold at ₹1,450-1,480 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹300-307 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹290-295 per kg and 40/41 count combed yarn (warp) was priced at ₹312-315 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In the Tiruppur market, the downward trend continued in cotton yarn prices even after Diwali. Spinning mills reduced cotton yarn prices by ₹20 per kg today. Market prices of cotton yarn also slipped by ₹5-7 per kg. A trader from Tiruppur told Fibre2Fashion, “There was a lack of confidence amid sluggish demand from the downstream industry. Buyers are refraining from buying, so prices touch the bottom line. However, buyers will turn up in the market for seasonal purchases.”

Today, 30 count combed cotton yarn was traded at ₹305-310 per kg (GST extra), 34 count combed at ₹315-320 per kg and 40 count combed at ₹320-325 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at ₹275-280 per kg, 34 count carded at ₹282-285 per kg and 40 count carded at ₹292-295 per kg, as per TexPro.

In Gujarat, cotton prices dropped by ₹3,000 per candy of 356 kg since Diwali due to seasonal pressure and sluggish demand from spinning mills. According to market sources, spinning mills were slow in buying cotton as they are facing disparity at current cotton and yarn prices. Demand will pick up once the prices drop below ₹60,000 per candy of 356 kg. Cotton prices declined to ₹64,000-64,500 per candy in Gujarat.

Fibre2Fashion News Desk (KUL)

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