South Indian cotton yarn prices steady, hopes pinned on summer demand

The Mumbai market witnessed a steady trend in cotton yarn prices. The market noted slow demand from the weaving industry. Most power looms faced poor uplift of cotton fabric from the garment industry. A trader from Mumbai told Fibre2Fashion, “The current year passed with slow demand from the entire world. The prices remained steady amid slow buying. However, the market is expecting improvement in the coming year as summer demand will increase according to the seasonal trend.” 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,400-1,420 and ₹1,295-1,350 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹318-325 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-263 per kg, 40/41 carded warp at ₹242-248 per kg, 40/41 combed warp at ₹262-266 and 30/32 carded warp at ₹230-235 per kg, according to Fibre2Fashion's market insight tool TexPro. 

Cotton yarn prices also remained steady in the Tiruppur market. There was no significant buying activity from spinning mills. Export demand was very limited. A trader from Tiruppur told F2F, “Every year, summer garment manufacturing picks up in December and January. Therefore, the market is expecting an improvement in buying by mid-January. Spinning mills are silent on price revision for the next month. They will not change the prices of cotton yarn but may adjust them.” 

In Tiruppur, cotton yarn prices were noted as 30 count combed cotton yarn at ₹258-262 per kg (excluding GST), 34 count combed cotton yarn at ₹268-273 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹237-242 per kg and 40 count carded cotton yarn at ₹240-246 per kg, as per TexPro. 

Cotton prices were steady after a recent surge in Gujarat. The natural fibre had witnessed a rise on account of buying from spinning mills and procurement by the Cotton Corporation of India (CCI). However, demand from spinning mills eased, leading to stability in prices. According to traders, the market was facing a cash crunch as spinning mills were dealing with slow demand from the weaving industry. A payment crisis is causing slow buying of cotton in the market. 

In the Gujarat market, Shankar-6 cotton was quoted between ₹55,000-55,500 per candy of 356 kg. Southern mills intended to buy cotton at ₹55,500-56,000 per candy. The arrival was 35,000 bales of 170 kg in Gujarat. All India arrival was estimated at 180,000-185,000 bales of 170 kg. 

Fibre2Fashion News Desk (KUL)