Mumbai market witnessed a steep fall in cotton yarn prices. The decrease in buying from the weaving industry and the payment crisis dragged cotton yarn prices down by ₹5-20 per kg. A trader from Mumbai market told Fibre2Fashion, “There was already limited demand for cotton yarn. This further declined because of the bearish trend in cotton prices due to arrival of new crop in some mandis.” The entire value chain became cautious as most buyers preferred to wait and watch for the market to bottom out. The payment crisis was also a factor for the bearish trend. 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,750-1,800 and ₹1,650-1,700 per 5 kg (GST extra) respectively. 80 carded (weft) cotton yarn was sold at ₹1,720-1,750 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹340-350 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹335-340 per kg. 40/41 count combed yarn (warp) was priced at ₹385-390 per kg, according to Fibre2Fashion’s market insight tool TexPro. Cotton yarn prices remained bearish in Tiruppur market. Traders said that carded cotton yarn was traded with a decline of ₹2-5 per kg as new cotton arrival in north India deterred buyers to hold on to new purchases. A trader from Tiruppur told Fibre2Fashion, “New cotton prices for October delivery are quite cheaper than spot prices. Such difference in prices discouraged the weaving industry from further buying. New cotton arrival in other regions will begin in October only, but north India’s arrival dampened sentiments all over India. Today, 30 count combed cotton yarn was traded at ₹350-355 per kg (GST extra), 34 count combed at ₹362-367 per kg and 40 count combed at ₹370-375 per kg in Tiruppur market. Cotton yarn of 30 count carded was sold at ₹330-335 per kg, 34 count carded at ₹338-343 per kg and 40 count carded at ₹347-352 per kg, as per TexPro.
South India’s cotton yarn prices slipped further today as buying dried up. New cotton arrival in north India has given a signal that prices are likely to fall in the coming days. Mumbai noted a decline of ₹5-20 per kg, while carded yarn lost ₹2-6 per kg in Tiruppur. Spinning mills in Gujarat and other regions reduced their selling prices by ₹5-10 per kg.
In Gujarat, cotton prices steadied amid slower demand. Old cotton arrival was also negligible. New cotton arrival from Karnataka was very limited and insignificant for the market. As of now, Gujarat’s cotton crop is good, and the arrival will begin in October if the rains do not disrupt crop progress. Last season’s Shankar-6 cotton was traded at ₹85,000-95,000 per candy of 356 kg in the spot market of Gujarat.
Fibre2Fashion News Desk (KUL)