South India sees weak demand for cotton yarn at higher prices

Carded yarn prices gained further in Tiruppur market during the last couple of trading sessions. Traders said that there was better buying in carded yarn which caused for price rise of ₹5-8 per kg. Smaller mills are mainly producing carded yarn. They are trying to increase yarn prices to reduce disparity. Recent increase in cotton prices widened disparity in yarn production. Traders expect better demand from downstream industry in next one week. Purusottam Parmanandka, joint managing director of Tiruppur-based yarn trading company Kesharinandan Knit Fabrics Pvt Ltd told Fibre2Fashion, “Market is expected to improve in September. Buying from end users will improve in next week. Currently, there is better demand in carded yarn.” 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.

Cotton yarn prices gained in south Indian markets since last week. Tiruppur market noted increase of ₹5-8 per kg for carded yarn, but combed yarn remained steady. Mumbai market also registered increase in yarn prices. However, market sentiment weakened this week as buyers backtracked at higher prices. Traders expect buying to improve next month.

Mumbai market noted steady trend in prices as demand weakened at higher prices. Traders said that cotton yarn prices gained last week. Initially, fabric also found support from uptrend of yarn, but demand from garments manufacturers remained average. Now the entre value chain is waiting for demand from end users. Traders said that yarn prices can get support only when garment buying picks up. Some counts of cotton yarn had registered increase of ₹5-8 per kg in last week, but there is steady trend this week. 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,925-1,975 and ₹1,850-1,900 per 5 kg (GST extra) respectively. 80 carded (weft) cotton yarn was sold at ₹1,870-1,920 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹375-385 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹360-365 per kg. 40/41 count combed yarn (warp) was priced at ₹425-430 per kg, as per TexPro.

In Gujarat, cotton prices remained steady as buying from spinning mills was limited. Many mills have reduced yarn production or have closed down totally. Cotton was traded at ₹92,000-100,000 per candy of 356 kg in spot market.

Fibre2Fashion News Desk (KUL)