Cotton yarn remains bearish in south India, but optimism in market

In the Tiruppur market, cotton yarn prices decreased by ₹2-5 per kg as mills and traders were forced to offer lower prices. They were feeling difficulty in finding buyers due to slower demand from the weaving and garment industry. However, traders saw a hope from stronger ICE cotton. A trader from Tiruppur told Fibre2Fashion, “If ICE cotton remains stronger, demand of Indian cotton and yarn may pick up. Spinning mills have received some enquiries. Gujarat’s mills have already got order for cotton yarn supply. The market will take at least two weeks to respond positively.”

Prices in the Tiruppur market were noted at ₹268-273 per kg (excluding GST) for 30 count combed cotton yarn, ₹280-285 per kg for 34 count combed cotton yarn, ₹290-295 per kg for 40 count combed cotton yarn, ₹242-246 per kg for 30 count carded cotton yarn, ₹251-254 per kg for 34 count carded cotton yarn, and ₹256-260 per kg for 40 count carded cotton yarn, according to Fibre2Fashion’s market insight tool TexPro.

In Mumbai, cotton yarn prices were steady due to poor demand. Traders were evaluating the impact of export orders received by Gujarat-based mills. Market sources said that carded and carded compact yarn of 21, 30, 31, 32 counts are to be exported to China. But demand for grey and finished fabric was very slow which is key base for market sentiments. Mills and traders are facing losses. Sources said that 5,000 MT (200 containers) cotton yarn will be exported to China. Market is, however, yet to react on the development, as there is difference of opinion on the impact of the export order.

In Mumbai, the prices of 60 count carded cotton yarn of warp and weft varieties were stable at ₹1,480-1,515 and ₹1,340-1,380 per 5 kg (excluding GST), respectively. Other prices include ₹345-350 per kg for 60 combed warp, ₹1,440-1,480 per 4.5 kg for 80 carded (weft) cotton yarn, ₹273-278 per kg for 44/46 count carded cotton yarn (warp), ₹258-268 per kg for 40/41 count carded cotton yarn (warp), and ₹282-286 per kg for 40/41 count combed yarn (warp), as per TexPro.

In Gujarat, cotton prices remained steady amid reports of yarn export orders from China. According to the trade sources, spinning mills are yet to take a view on further demand, and are still cautious for further buying. Presently, the market is witnessing limited buying. Cotton arrival was also limited. Cotton was traded at ₹59,000-60,000 per candy of 356 kg. Cotton arrivals in Gujarat were estimated at 24,000-26,000 bales of 170 kg, with all India arrival estimated around 90,000-95,000 bales of 170 kg.

Fibre2Fashion News Desk (KUL)