South Indian mills under pressure as cotton yarn prices decline

In Mumbai, mills and traders are under pressure to clear their stocks, leading to a downward trend in cotton yarn prices. Prices dropped by ₹4-5 per kg. “Mills were calling brokers again to find prospective buyers. Normally, brokers have to ask mills for their demands when they have buyers, but mills are pushing them to find potential buyers now,” a trader from Mumbai told Fibre2Fashion.  

In Mumbai, 60 count carded cotton yarn of warp and weft varieties traded at ₹1,480-1,515 and ₹1,340-1,380 per 5 kg (excluding GST), respectively. Other prices include ₹345-350 per kg for 60 combed warp, ₹1,440-1,480 per 4.5 kg for 80 carded (weft) cotton yarn, ₹273-278 per kg for 44/46 count carded cotton yarn (warp), ₹258-268 per kg for 40/41 count carded cotton yarn (warp), and ₹295-305 per kg for 40/41 count combed yarn (warp), according to Fibre2Fashion's market insight tool TexPro.  

In the Tiruppur market, slow demand dragged yarn prices down by ₹2-4 per kg. “Mills and stockists are feeling the pressure to find potential buyers. Demand from downstream industry was very poor. Sellers are left with no option but to reduce the prices,” a Tiruppur-based trader told F2F. 

Prices in the Tiruppur market include ₹272-276 per kg (excluding GST) for 30 count combed cotton yarn, ₹285-290 per kg for 34 count combed cotton yarn, ₹300-305 per kg for 40 count combed cotton yarn, ₹247-250 per kg for 30 count carded cotton yarn, ₹252-255 per kg for 34 count carded cotton yarn, and ₹260-265 per kg for 40 count carded cotton yarn, as per TexPro.

In Gujarat, cotton prices have remained stable after a slight increase in previous sessions. ICE cotton prices have seen some gains, leading buyers to engage in new deals during an uptrend. However, weakness in the natural fibre market discourages buyers. ICE cotton traded at $83.49 per pound, reflecting a gain of 2.18 per cent during the Asian trading session. Cotton yarn was traded at ₹61,500-62,000 per candy of 356 kg, slightly higher compared to the previous week. Cotton arrivals in Gujarat were estimated at 24,000-26,000 bales of 170 kg, with all India arrival estimated around 90,000 bales. 

Fibre2Fashion News Desk (KUL)