Stable cotton yarn prices in south India; Tiruppur expects price rise

Although cotton yarn prices were stable in the south Indian market, there was optimism for a slight improvement. The Tiruppur and Mumbai markets witnessed average demand and a steady trend in prices. Traders from Tiruppur expected a limited price rise at the beginning of the next month. Mills had already reduced discounts on cotton yarn as they were not under severe stress to sell. However, the Mumbai market also showed stability in cotton yarn prices amid average buying. 

“Cotton yarn prices did not see significant movement as demand may not see an immediate spurt. Power looms were running at normal capacity, but they are facing a shortage of new orders. Summer garment demand has yet to pick up in the market,” a trader from Mumbai told Fibre2Fashion. 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,425-1,450 and ₹1,310-1,380 per 5 kg (excluding GST), respectively. Other prices included 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 ₹264-268, and 30/32 carded warp at ₹232-237 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market may see a limited rise in cotton yarn prices. A trader from Tiruppur told F2F, "The recent gain in cotton prices may support yarn prices. Mills may increase prices by ₹2-3 per kg in the coming months. They have already decreased discounts on cotton yarn prices as they were not facing distress sales." 

In the Tiruppur market, 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 noticed an increase in the Gujarat market because of better buying from spinning mills and MNCs. According to trade sources, spinning mills were keen to buy the natural fibre as they were not getting good quality supplies from northern states. Cotton prices increased by ₹200-300 per candy of 356 kg. In the Gujarat market, Shankar-6 cotton was quoted between ₹55,000-55,600 per candy of 356 kg. Southern mills intended to buy cotton at ₹56,000-56,200 per candy. The arrival was 35,000-37,000 bales of 170 kg in Gujarat. The all-India arrival was estimated at 175,000-178,000 bales.

Fibre2Fashion News Desk (KUL)