South Indian mills cut discounts amid rise in cotton prices

In Mumbai, cotton yarn prices rose ₹3-4 per kg for 60s and 46s counts due to mills reducing discounts on their card rates, which led to a rise in market prices. A Mumbai trader told Fibre2Fashion, "Cotton yarn prices rose as mills aimed to boost their net prices. More expensive cotton increased their production costs. The prices rose specifically in 60s and 46s counts, counts which saw better demand from the weaving industry." 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,435-1,460 and ₹1,325-1,365 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹326-332 per kg, 80 carded weft at ₹1,325-1,350 per 4.5 kg, 44/46 carded warp at ₹258-264 per kg, 40/41 carded warp at ₹244-248 per kg and 40/41 combed warp at ₹272-277 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market noted a steady trend in cotton yarn prices, but mills cut discounts on the card rate of cotton yarn. The market may see an upside movement next week. A trader from Tiruppur told F2F, “Spinning mills have reduced discounts by ₹3-5 per kg. They were feeling pressure due to a steep rise in cotton prices. Although, market prices of cotton yarn remained steady.” Trade sources said that average discounts were reduced from ₹10-15 per kg to ₹7-10 per kg. 

Prices in the Tiruppur market were noted as 30 count combed cotton yarn ₹255-262 per kg (excluding GST), 34 count combed cotton yarn ₹265-272 per kg, 40 count combed cotton yarn ₹275-282 per kg, 30 count carded cotton yarn ₹230-236 per kg, 34 count carded cotton yarn ₹238-245 per kg and 40 count carded cotton yarn ₹246-252 per kg, as per TexPro. 

In Gujarat, cotton prices maintained an upward trend, improving further by ₹200-300 per candy of 356 kg over the last few days, although prices stabilised on Friday. The market was affected by tight cotton supply and limited buying by mills, balanced by slow demand from the weaving industry. Shankar-6 cotton was quoted between ₹60,200-60,800 per candy. The cotton arrival in Gujarat was around 9,000 bales of 170 kg, with an all-India arrival estimated at 20,000 bales. 

Fibre2Fashion News Desk (KUL)