Poor demand of cotton yarn in south India, prices down in Mumbai

Cotton yarn prices decreased by ₹3-5 per kg in the last couple of days as the market saw very slow demand from power loom owners. A trader from Mumbai told Fibre2Fashion, "There was no sign of improvement in buying from fabric manufacturers. Power loom production usually picks up this month and reaches its peak in August every year. But this year, they are running production on a very limited scale as the garment industry is still very slow in buying.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,390-1,440 (approximately $16.64-$17.24) and ₹1,240-1,320 per 5 kg (approximately $14.84-$15.80) (excluding GST), respectively. Other prices include 60 combed warp at ₹325-329 (approximately $3.89-$3.94) per kg, 80 carded weft at ₹1,320-1,360 (approximately $15.80-$16.28) per 4.5 kg, 44/46 carded warp at ₹252-258 (approximately $3.02-$3.09) per kg, 40/41 carded warp at ₹249-257 (approximately $2.98-$3.08) per kg and 40/41 combed warp at ₹287-292 (approximately $3.44-$3.50) per kg, according to trade sources.

The Tiruppur market saw stability in cotton yarn prices, but demand was very limited. A price fall cannot be ruled out in the coming days as mills and stockists feel the pressure of slow demand. Trade sources said that exporters are not receiving the expected trade enquiries from their foreign buyers, despite reports of depleting inventories with global retail brands. However, they are still very cautious about new purchases.

In Tiruppur, knitting cotton yarn prices were noted on Thursday as: 30 count combed cotton yarn at ₹267-273 (approximately $3.20-3.27) per kg (excluding GST), 34 count combed cotton yarn at ₹276-281 (approximately $3.30-3.36) per kg, 40 count combed cotton yarn at ₹288-295 (approximately $3.45-3.53) per kg, 30 count carded cotton yarn at ₹240-247 (approximately $2.87-2.92) per kg, 34 count carded cotton yarn at ₹245-251 (approximately $2.87-2.93) per kg and 40 count carded cotton yarn at ₹251-256 (approximately $3.00-3.06) per kg.

In Gujarat, cotton prices have seen gains of ₹200 per candy of 356 kg due to limited availability. Local cotton prices did not see any decline in the last couple of days despite a decrease in ICE cotton. A trader from Gujarat said that local cotton prices are not following the trend of ICE cotton as the local industry will be buying cotton in the coming 3-5 months, while new arrivals will not come before October. It will not be surprising if cotton prices rise further due to lower availability. Estimates indicate that around 40-50 per cent of cotton is being sold from ginners’ stocks.

Cotton arrivals were recorded at 10,000-11,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 35,000-47,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹55,700-56,000 (approximately $666.78-$670.37) per candy of 356 kg, while southern mills were looking to buy cotton at ₹57,000-57,500 (approximately $682.35-$688.33) per candy.

Fibre2Fashion News Desk (KUL)