Mixed trends in south India's cotton market; prices up in Mumbai

Cotton yarn prices in Mumbai have seen an increase of ₹2-5 per kg following a decline in the price of cotton. The drop in prices drew buyers in, seeking to average their holdings. A trader from the Mumbai market, speaking to Fibre2Fashion, emphasised, "One shouldn't confuse demand and consumption from the weaving industry. There has been an uptick in purchases from traders and stockists who are trying to reduce their cost of holdings. However, there hasn't been any noticeable improvement from the consumer industry." 

In Mumbai, cotton yarn traded higher by ₹2-5 per kg. The 60 count carded cotton yarn of warp and weft varieties was sold at ₹1,470-1,500 and ₹1,340-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp ₹345-352 per kg, 80 carded (weft) cotton yarn ₹1,420-1,450 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) ₹280-287 per kg, according to Fibre2Fashion's market insight tool TexPro. 

In the Tiruppur market, cotton yarn prices have shown weakness, decreasing by ₹2 per kg, as buyers have been hesitant to make fresh purchases. Mills have kept their card rate constant for the month, aiming to maintain prices at the current level due to the reported losses of ₹10-15 per kg. Speaking to F2F, a trader from Tiruppur explained, "There has been no surge in the demand for cotton yarn. The weaving and garment industries aren't buying raw materials since they lack orders from buyers. They are currently waiting for both domestic and export orders." 

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, cotton prices have increased despite slow purchasing activity from ginning mills. The natural fibre saw an upturn of ₹1,000-1,200 per candy (356 kg) over the last few days. According to trade sources, ginners are not overly worried. They have already factored in losses due to price disparity and now aim to hold onto their stock to support cotton prices. Cotton was trading between ₹58,000 and ₹58,500 per candy (356 kg). Estimated cotton arrivals in Gujarat were around 18,000-20,000 bales (each bale weighing 170 kg), while the all-India arrival estimate stood at approximately 65,000-70,000 bales (170 kg each). 

Fibre2Fashion News Desk (KUL)