Festival fails to support yarn prices; south India remains steady


Production cut by spinning mills and festival season on account of Ganesh Chaturthi failed to support buying, resulting in cotton yarn prices showing mixed trend in south India. Tiruppur noted steady trend as average demand kept the prices at previous level, but prices fell by up to ₹10 per kg in Mumbai. Traders expect fabric buying to ease in near future.

Carded yarn prices were steady in Tiruppur market during previous days. Traders said that there was average to better demand in yarn market. However, current demand is not able to support price rise in cotton yarn. The prices had increased by ₹5-8 per kg in last week. A veteran trader Purusottam Parmanandka told Fibre2Fashion, “Prices were steady in the southern market. Demand from weaving industry was average to better. But the prices could not get support.” 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 ₹365-370 per kg in Tiruppur market. Cotton yarn of 30 count carded was sold at ₹327-330 per kg, 34 count carded at ₹335-340 per kg, and 40 count carded at ₹345-350 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Production cut by spinning mills and festival season on account of Ganesh Chaturthi failed to support buying, resulting in cotton yarn prices showing mixed trend in south India. Tiruppur noted steady trend as average demand kept the prices at previous level, but prices fell by up to ₹10 per kg in Mumbai. Traders expect fabric buying to ease in near future.

Mumbai market noted downward trend in prices as demand remained very weak. There was no support from downstream industry in the season of Ganesh Chaturthi. The festival is most important fortnight for celebration in central India, specifically in Maharashtra. Traders said that fabrics buying was very weak as garment manufacturers are not getting sufficient orders from retailers. Consumers’ buying has not picked up despite festivities. Cotton yarn prices decreased by up to ₹10 per kg. Traders worry that yarn prices may reduce further if fabrics buying does not improve. 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,900-1,950 and ₹1,8500-1,875 per 5 kg (GST extra) respectively. 80 carded (weft) cotton yarn was sold at ₹1,860-1,910 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹370-380 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹356-361 per kg. 40/41 count combed yarn (warp) was priced at ₹395-400 per kg, as per TexPro.

In Gujarat, cotton prices remained steady as buying from spinning mills lowered. Many mills have reduced yarn production, or they have closed. Cotton was traded at ₹92,000-100,000 per candy of 356 kg in spot market of Gujarat. According to the traders, early sown new cotton has started to arrive in Rajkot and nearby region. But the arrival will reach peak in October only. Crop condition is good. Traders denied speculations about pest attack on the crop in Gujarat.

Fibre2Fashion News Desk (KUL)




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