Cotton yarn trade better in Tiruppur due to Durga Puja buying

Cotton yarn prices remained stable in the Tiruppur market despite price hikes by spinning mills. Traders said many mills have increased yarn prices, but market prices are ruling at previous levels. A trader from Tiruppur told Fibre2Fashion, “There was average to slightly better demand in yarn market. It will take time to absorb the recent price hike by mills. If the demand improves, market prices will rise.” The most important hosiery garment market is receiving demand for upcoming festivals like Durga Puja in West Bengal. Today, 30 count combed cotton yarn was traded at ₹350-355 per kg (GST extra), 34 count combed at ₹362-367 per kg and 40 count combed at ₹370-375 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at ₹335-337 per kg, 34 count carded at ₹340-345 per kg, and 40 count carded at ₹347-352 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Mumbai market noticed a further fall in cotton yarn prices. Payment crises and poor demand are forcing stockists and traders to reduce prices. Mills are also facing pressure due to bearish condition. A trader from the Mumbai market told Fibre2Fashion, “Payment crisis is the main cause of concern for the bearish trend. Weavers are buying cotton just for immediate need. Tight payment conditions are also limiting stock holding capacity of the consumer industry.” The market continued to witness a downward trend in prices. Cotton yarn prices slipped by ₹3-8 per kg for most of the varieties. 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,825-1,875 and ₹1,740-1,800 per 5 kg (GST extra) respectively. 80 carded (weft) cotton yarn was sold at ₹1,820-1,870 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹360-370 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹340-345 per kg. 40/41 count combed yarn (warp) was priced at ₹387-392 per kg, as per TexPro.

In Gujarat, cotton prices declined in the last couple of days as new cotton arrived from Karnataka in a few areas. However, the current arrival has mere symbolic value due to negligible quantity. New cotton (unginned) was traded at ₹2,000 per maund of 20 kg. The price of last season’s Shankar-6 cotton declined by ₹5,000-6,000 per candy of 356 kg. The prices were noted at ₹85,000-95,000 per candy in the spot market of Gujarat. According to the traders, moisture is very high around 25-30 per cent in new kapas. There is no taker of new kapas because buyers cannot use the same as they cannot dry up the new cotton due to the rainy season.

Fibre2Fashion News Desk (KUL)