Poor demand, higher prices limit cotton yarn trade in south India

There was no trade today in Tiruppur market due to the ongoing two-day strike in the textile city. The Tiruppur Exporters’ Association (TEA) has given the call for the strike on January 17 and 18, 2022.

In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,950-2,010 per 5 kg and ₹1,690-1,740 per 5 kg respectively. Warp variety yarn has seen a price rise of ₹20-40 per 5 kg, but weft yarn traded flat. 80 count carded cotton yarn of weft variety was sold up by ₹65-70 at ₹1,880-1,920 per 4.5 kg. Carded cotton yarn (44/46 count) of warp variety was sold at ₹1,720-1,780 per 5 kg, which appreciated by ₹20 per 5 kg.

In Mumbai market, cotton yarn prices pushed up due to higher cotton prices. However, demand did not support market sentiments. According to market sources, buyers were looking for fresh deal in urgent need only, like fulfilling an export commitment. Currently, buyers are buying cotton yarn for their urgent need and in smaller quantity. Fabric manufacturers are trying to hold production due to higher cotton yarn prices. It is likely that powerlooms in Bhiwandi will be closed for the next 3-4 days to manage mounting fabric stocks. However, there is normal production in Ichalkaranji.

Another source from Ahmedabad told Fibre2Fashion that production activities are slow in this vibrant textile hub as domestic summer clothing season is yet to begin. Higher cotton yarn prices are also discouraging production activities. There is glut situation for cotton yarn, but grey fabric is not available in required variety because fabric production declined after yarn price rise. “Fabric manufacturers are fearful for losses at current production cost. Garment and apparel manufactures are looking for grey and finished fabrics but there are not ready to pay higher price as production for the summer season is yet to begin properly.”

Meanwhile, cotton prices firmed up further in domestic market. In Maharashtra, cotton prices surged by ₹200-300 per candy of 356 kg amid increased demand from spinning mills and higher arrivals. The prices of cotton (30mm variety) in Nagpur and Yavatmal line were ruling between ₹77,300-77,800 per candy. In Jalgaon Line, 29mm RD 75 variety cotton was priced at ₹74,000-75,500 per candy. The price of cotton of 30 plus mm RD 75 variety in Silod line of the state was ₹77,300 to ₹78,7200 per candy.

ZCE cotton yarn May 2022 futures traded lower by CNY 220 at CNY 28,925 per ton while September 2022 traded lower by CNY 150 at CNY 28,385 per MT today. There was no trade in ICE cotton on Monday. 

Fibre2Fashion News Desk (KUL)