Cotton yarn prices down in Mumbai, demand not as per expectations

Cotton yarn demand from the weaving industry in south India was not as high as expected earlier. As a result, cotton yarn prices in Mumbai decreased by ₹2-3 per kg due to slower demand from the downstream industry. A similar pessimistic tone was observed in the cotton yarn trade in Tiruppur, although cotton yarn prices there remained steady. The cold wave in the northern states also sent negative signals to the textile value chain. Traders noted that the shorter length of daylight provides limited trading hours for the market. 

The Mumbai market experienced a weaker trend in cotton yarn prices due to limited demand from the weaving industry. Stockists attempted to sell their stocks by offering lower prices. A trader from Mumbai informed Fibre2Fashion, “Mills did not reduce the prices of cotton yarn. However, stockists were clearing their stock at lower prices. The market might continue to witness a bearish tone until mid-January. The cold wave and shorter days also serve as negative factors for the trade.” 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,400-1,420 and ₹1,295-1,350 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹318-325 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-263 per kg, 40/41 carded warp at ₹242-248 per kg, 40/41 combed warp at ₹262-266 and 30/32 carded warp at ₹230-235 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market also observed slower buying from the weaving industry. However, prices remained stable across all counts and varieties. A trader from Tiruppur told F2F, “The demand from the weaving industry did not meet the market's expectations. This poor demand dampened market sentiments. The fabric market also exhibited a bearish tone. The garment industry was slow in purchasing fabric.” 

In Tiruppur market, cotton yarn prices were noted as 30 count combed cotton yarn at ₹258-262 per kg (excluding GST), 34 count combed cotton yarn at ₹268-273 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹237-242 per kg and 40 count carded cotton yarn at ₹240-246 per kg, as per TexPro. 

Cotton prices were also declining in Gujarat due to poor buying from spinning mills. In this central state of the country, cotton prices eased by ₹100-200 per candy of 356 kg. According to traders, spinning mills were cautious about fresh buying as they were not very confident about yarn demand. 

In the Gujarat market, Shankar-6 cotton was quoted between ₹54,500 and ₹55,000 per candy of 356 kg. Southern mills intended to buy cotton at ₹55,500 to ₹56,000 per candy. The arrival in Gujarat was 35,000 bales of 170 kg each. The all-India arrival was estimated at 160,000 to 170,000 bales of 170 kg each. 

Fibre2Fashion News Desk (KUL)