South India cotton yarn still feels pressure, prices further down

12 Jul '22

2 min read

Pic: 123rf.com

Cotton yarn prices slipped further today in South Indian markets as buyers remained absent. Uncertain market conditions dampened buyers’ confidence. Weaving and garment industries are slow in production in absence of end users’ demand. Market sources said that export orders from the US and Europe are limited, and demand is not likely to improve very soon.

In Mumbai market, cotton yarn prices lost up to ₹15 per kg due to poor demand and stockists’ selling pressure. Cotton yarn of lower counts noted more losses compared to higher count yarn. A Mumbai-based broker told Fibre2Fashion, “Buyers remained absent from the market. Most powerlooms are not working.” However, traders hope that substantial number of powerlooms, which were closed due to shortage of workers, will begin production as Muslim workers will return to work after Eid celebration.

In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,730-1,830 and ₹1,560-1,630 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,660-1,700 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹1,690-1,740 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹305-310 per kg. 40 count combed yarn (warp) was priced at ₹360-365 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Cotton yarn prices decreased further in Tiruppur market as demand remained very weak. Mills and stockists were feeling pressure to sell their stock, but buyers remained silent. A trader from Tiruppur market Purusottam Parmanandka told Fibre2Fashion, “There is unprecedented situation in the market. The demand is not going to pick up this month.” Export orders are said to be fewer from the US and Europe. In Tiruppur market, cotton yarn prices declined further by ₹3-5 per kg in absence of buying. 30 count combed cotton yarn was traded at ₹367-372 per kg (GST extra), 34 count combed at ₹377-382 per kg and 40 count combed at ₹382-387 per kg. Cotton yarn of 30 count carded was sold at ₹327-330 per kg, 34 count carded at ₹332-335 per kg and 40 count carded at ₹335-340 per kg, as per TexPro.

In Gujarat, cotton prices remained stable after high volatility in previous session. Millers’ demand was weak but delay in cotton import supported prices at previous levels. Shankar-6 cotton spot prices was ruling at ₹78,000-88,000 per candy of 356 kg.

Fibre2Fashion News Desk (KUL)

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