Cotton yarn prices crash in south Indian markets as demand dries up

“Crude oil is the only cause of concern for the Indian textile industry due to its inflationary impact. Currently, there is no major impact on exports as Russia and Ukraine are not major market for Indian exporters. Hopefully, the conflict will not extend to other countries. But, if the war prolongs and expands, things may move in reverse. So, domestic textile industry is taking a cautious approach at present, TT Limited managing director Sanjay K Jain told Fibre2Fashion.

A broker from Mumbai, BN Ladda, said that cotton yarn prices fell down up to ₹12 per kg as buyers were absent from the market. He told that around 60 percent powerlooms have closed down temporarily as demand from garment industry has dried up. Therefore, spinning millers, traders and stockists have come under pressure to sell on lower prices. According to market sources, buyers in the entire value chain of textile sector are cautious for fresh buying.

In Mumbai market, yarn prices fell down by ₹5-12 per kg as demand weakened further. However, 80 carded weft yarn showed upward trend due to scarcity of supply. 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,910-1,960 per 5 kg and ₹1,680-1,730 per 5 kg respectively. 80 count carded cotton yarn of weft variety was sold at ₹1,900-1,950 per 4.5 kg. Carded cotton yarn (44/46 count) of warp variety was traded steady at ₹1,730-1,770 per 5 kg.

Tiruppur market recorded fall of ₹3-8 per kg in prices of all the varieties of cotton yarn. 30 count combed cotton yarn was traded at ₹360-370 per kg, 34 count combed at ₹367-374 per kg and 40 count combed at ₹395-405 per kg. Cotton yarn of 30 count carded was sold at ₹320-325 per kg, 34 count carded at ₹322-327 per kg and 40 count carded at ₹340-350 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In the global market, ZCE cotton yarn May 2022 futures traded lower by CNY 85 at CNY 28,310 per ton and September 2022 traded down by CNY 295 at CNY 27,740 per MT today. ZCE cotton March declined by CNY 125 to CNY 21,165 per MT and May contract traded down by CNY 105 at CNY 20,365 per MT.

ICE cotton futures closed with mixed session on Thursday. Many markets that had been significantly higher in the early morning became flat to slightly lower as the day progressed. Cotton prices dropped as a result of decline in other markets. Cotton contract for March 2022 closed at 122.59 cents, up 19 points; May 2022 closed at 119.16 cents, down 214 points; December 2022 closed at 101.27 cents, down 121 points.

Meanwhile, cotton prices ruled steady in the markets of Gujarat on Friday amid limited demand from mills, while daily arrivals also showed no significant change. As domestic spinning mills adopted a wait-and-watch approach due to the Russian military attack on Ukraine, cotton prices steadied in the spot market. 29 mm cotton was at ₹77,000-78,000 per candy of 356 kg. A grade cotton was recorded at ₹77,000-78,000 per candy, B grade cotton at ₹76,000-77,000 per candy and the average grade cotton at ₹75,000-75,500 per candy. V797 variety new cotton was quoted at ₹43,000-45,500 per candy.

Fibre2Fashion News Desk (KUL)