Cotton yarn prices dip in south India due to fewer export orders




Cotton yarn prices further dropped in South India today as weaving and garment industries have slowed down their production in the absence of end users’ demand. Traders said that export orders from the US and Europe are fewer, and demand is not likely to improve very soon. Cotton yarn prices declined by ₹5-15 per kg in Mumbai and Tiruppur amid weaker demand.

In Mumbai market, cotton yarn prices lost ₹5-15 per kg due to poor demand and stockists’ selling pressure. A Maharashtra based broker told Fibre2Fashion, “The market is facing sluggish demand amid payment crisis. Traders are not getting payment for their previous supplies because those yarn stocks have not been consumed by weaving industry.”

Cotton yarn prices further dropped in South India today as weaving and garment industries have slowed down their production in the absence of end users’ demand. Traders said that export orders from the US and Europe are fewer, and demand is not likely to improve very soon. Cotton yarn prices declined by ₹5-15 per kg in Mumbai and Tiruppur amid weaker demand.

Bhiwandi and other power loom hubs in Maharashtra are also facing labour shortage as Muslim workers went for holiday on account of Eid. In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,750-1,850 and ₹1,580-1,650 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,680-1,710 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹1,710-1,740 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹320-325 per kg. 40 count combed yarn (warp) was priced at ₹375-380 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Cotton yarn prices dropped further in Tiruppur market as demand remained very weak. Mills and stockists were trying to sell their stock, but buyers remained silent. A trader from Tiruppur market told Fibre2Fashion, “There is no indication of support from downstream industries because export orders are said to be fewer from the US and Europe. Therefore, the demand is not going improve in near future. Such sluggish conditions may continue till July end.” In Tiruppur market, cotton yarn prices declined further by ₹3-10 per kg in absence of buying. 30 count combed cotton yarn was traded at ₹370-375 per kg (GST extra), 34 count combed at ₹380-385- per kg and 40 count combed at ₹385-390 per kg. Cotton yarn of 30 count carded was sold at ₹332-335 per kg, 34 count carded at ₹337-340 per kg and 40 count carded at ₹340-345 per kg, as per TexPro.

In Gujarat, cotton prices were facing pressure due to prolonged weaker demand and down trend in the global market. According to trade sources, stockists and MNCs are trying to clear their stocks at lower prices, but buyers are not keen on purchasing. Spot prices of benchmark Shankar-6 cotton variety came down to ₹78,000-88,000 per candy of 356 kg with decline of ₹2000 per candy.

Fibre2Fashion News Desk (KUL)





Source link