South India’s cotton yarn prices stable; Mumbai faces liquidity issues

The Mumbai market witnessed a steady trend in cotton yarn and market sentiments were weak because of liquidity crunch and poor demand. A trader from Mumbai told Fibre2Fashion, “Traders cannot rely on one market, so they must utilise their liquidity in other markets including the stock market. But recent fall in stock market squeezed the liquidity from the cotton yarn market. Prices remained stable but trade was limited.” 

Cotton yarn prices were stable in south India as demand from the weaving industry remained weak. Mumbai yarn market noticed limited trade and uncomfortable silence after a steep fall in the stock market. The Mumbai’s cotton yarn market’s liquidity suffered due to the fall, causing the demand to decrease. Demand was not encouraging in Tiruppur either.

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,540-1,570 and ₹1,440-1,490 per 5 kg (GST extra) respectively. 60 combed warp was priced at ₹345-350 per kg. 80 carded (weft) cotton yarn was sold at ₹1,470-1,490 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹275-280 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹262-268 per kg and 40/41 count combed yarn (warp) was priced at ₹290-293 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

Cotton yarn was traded at previous levels in the Tiruppur market. Buyers from the weaving segment were not interested in new deals. According to the traders, demand from the downstream industry is not likely to increase anytime soon because of high inflation and fear of recession in the global market. Buyers were not interested in new deals.30 count combed cotton yarn was traded at ₹285-290 per kg (GST extra), 34 count combed at ₹300-305 per kg and 40 count combed at ₹310-315 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at ₹255-260 per kg, 34 count carded at ₹265-270 per kg and 40 count carded at ₹270-275 per kg, as per TexPro. 

In Gujarat, cotton was traded higher by ₹500 to ₹62,000-62,500 per candy of 356 kg each since the end of last week. The prices increased because of improved demand and limited arrival. 

Fibre2Fashion News Desk (KUL)