Cotton yarn demand eases further in south India, prices down in Mumbai

In Mumbai, the drop in cotton yarn prices was due to a further slowdown in demand. Buyers have become more cautious with fresh purchases due to weak demand from both domestic and export markets. The cyclone in Gujarat and other parts of western India has also dampened buyer enthusiasm. According to a trader from the Mumbai market who spoke to Fibre2Fashion, "Cotton yarn prices have declined because traders, stockists, and mills were forced to lower prices in the current market scenario. Market sentiments are unlikely to improve very soon." 

In Mumbai, 60 count carded cotton yarn of warp and weft varieties was sold at ₹1,450-1,480 and ₹1,320-1,340 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹335-345 per kg, 80 carded (weft) cotton yarn ₹1,400-1,430 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) ₹277-282 per kg, according to Fibre2Fashion's market insight tool TexPro. 

In Tiruppur, cotton yarn trading exhibited a stable trend. However, demand from the downstream industry was lacklustre. A payment crisis has also hampered cotton yarn demand. A trader from Tiruppur told F2F, "Traders and the industry are not receiving payments from their buyers. This is causing slow payment movement. If a trader doesn't receive payment, he will be forced to halt new buying." 

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, trading and production activities have been put on hold due to heavy rainfall. Normal life and services have been disrupted, with many common services having been cut. The local administration will need to clear roads and restore power supply before the markets can be reopened. This is unlikely to happen before the coming Monday. In the meantime, cotton trading activities remain halted.

Fibre2Fashion News Desk (KUL)