Mixed trend in south Indian cotton yarn, prices bounce back in Mumbai

Mumbai market witnessed improvement in cotton yarn prices. Traders and stockists were quoting higher prices by ₹5 per kg as buyers rushed for restocking. A trader from the Mumbai market told Fibre2Fashion, “The market seems to have stabilised, but it may not continue for long. Short term buying has supported market sentiments.” 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,775-1,825 and ₹1,675-1,725 per 5 kg (GST extra) respectively. 60 combed warp was priced at ₹440-470 per kg. 80 carded (weft) cotton yarn was sold at ₹1,740-1,770 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹345-350 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹340-345 per kg. 40/41 count combed yarn (warp) was priced at ₹390-395 per kg, according to Fibre2Fashion’s market insight tool TexPro.

South India’s cotton yarn market noted mixed trend today. Yarn prices bounced back in Mumbai as traders and stockists were quoting higher rates amid better demand. However, Tiruppur market was still bearish and yarn prices slipped by ₹2-5 per kg. Traders feel that the market is waiting for better buying from garment industry to take a positive cue.

Cotton yarn prices, however, further slipped in the Tiruppur market. Traders said that carded cotton yarn was traded with fall of ₹2-5 per kg. Poor demand is a cause of concern for the entire value chain. A trader from Tiruppur told Fibre2Fashion, “Yarn prices are likely to find support as long as there are indications of better buying from garment units. A strong signal may turn the market sentiment to positive. The market will get support from local festival buying and later from export orders, but it is uncertain as to when it will happen.” Today, 30 count combed cotton yarn was traded at ₹348-352 per kg (GST extra), 34 count combed at ₹360-365 per kg, and 40 count combed at ₹365-370 per kg in Tiruppur market. Cotton yarn of 30 count carded was sold at ₹327-332 per kg, 34 count carded at ₹335-338 per kg and 40 count carded at ₹340-345 per kg, as per TexPro.

In Gujarat, cotton prices softened as traders speculated about early arrival of new crop. New cotton arrival was around 500 bales of 170 kg each in the entire Gujarat region. Traders expect that the arrival will reach a tally of 5,000 bales very quickly, but a broker denied the possibility. He said that new arrival will remain at normal pace. The price of Shankar-6 cotton eased by ₹2,000-3,000 per candy of 356 kg. Cotton was traded at ₹85,000-92,000 per candy in spot market of Gujarat. Cotton price trend in this state was in contrast to north India where cotton prices gained earlier as limited arrival was unable to meet mills’ demand.

Fibre2Fashion News Desk (KUL)