Cotton yarn steady in north India; easing of fibre prices awaited

Cotton yarn prices remained stable in Mumbai. Mills are struggling to maintain prices of cotton yarn amid weaker demand. “Mills are facing disparity due to higher cotton prices and poor demand from the weaving industry. Buying from downstream industry will not improve until cotton eases. But farmers are not keen on selling their crop at low prices,” a Mumbai-based trader told Fibre2Fashion. 

South India’s cotton yarn prices remained steady today amid weak demand. The entire value chain is waiting for cotton prices to ease to start buying it, but farmers are unwilling to sell as they consider current prices to be unattractive after witnessing higher rates a few months ago. Traders feel that steady trend may continue by the end of this year.

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,700-1,750 and ₹1,610-1,630 per 5 kg (GST extra) respectively. 60 combed warp was priced at ₹360-365 per kg. 80 carded (weft) cotton yarn was sold at ₹1,540-1,580 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹313-318 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹300-305 per kg and 40/41 count combed yarn (warp) was priced at ₹318-325 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

Prices remained stable in Tiruppur as well. Buyers remained absent from the market as they were not comfortable with the yarn prices. Traders said that the present situation is likely to continue till the end of the current year and there is little hope for ease in cotton prices. Only lower prices can attract buyers in the textile value chain. 

Today, 30 count combed cotton yarn was traded at ₹300-305 per kg (GST extra), 34 count combed at ₹315-320 per kg and 40 count combed at ₹320-325 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at ₹270-275 per kg, 34 count carded at ₹275-280 per kg and 40 count carded at ₹285-290 per kg, as per TexPro. 

In Gujarat, cotton was traded at ₹67,500-68,000 per candy of 356 kg. The prices were slightly higher due to an increase in cotton futures. However, the prices were lower compared to last week. According to the traders, MNCs and agri companies are purchasing cotton for deliveries against advance deals. Traders and consumer industry are waiting for prices to decrease, which is not likely to happen anytime soon. 

Fibre2Fashion News Desk (KUL)