06 June '23
(Fibre2Fashion News Desk (KUL): Cotton yarn prices remain stable in south India, with an uptick in demand boosting market sentiment. Although prices held steady, the potential for gains in the coming week is hinted at by heightened demand. Sources said that after emerging from a previously pessimistic environment, the market shows signs of potential growth if the positive demand continues. Notably, Mumbai's market registered a price increase of ₹2-5 per kg last week.
Cotton yarn prices in south India remain stable, with increased demand potentially signalling gains next week.
Mumbai and Tiruppur markets held steady.
Meanwhile, Gujarat saw a price rise in cotton due to ginners' reluctance to sell.
A recent uptick in ICE cotton has supported Indian fibre.
Strong demand lessens the need for significant discounts.
In Mumbai, cotton yarn prices have stabilised following last week's gains. Demand has increased from the weaving industry and traders, enabling mills to successfully offload their stock. A trader from Mumbai market told Fibre2Fashion, “Market sentiments were positive. Although, yarn prices did not move up, but mills have sold their stock. Earlier, they were struggling to find suitable buyers willing to offer reasonable prices for their stock.”
In Mumbai, 60 count carded cotton yarn of warp and weft varieties was sold at ₹1,470-1,500 and ₹1,340-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹345-352 per kg, 80 carded (weft) cotton yarn at ₹1,420-1,450 per 4.5 kg, 44/46 count carded cotton yarn (warp) at ₹264-272 per kg, 40/41 count carded cotton yarn (warp) at ₹256-264 per kg and 40/41 count combed yarn (warp) at ₹280-287 per kg, according to Fibre2Fashion's market insight tool TexPro.
In the Tiruppur market, cotton yarn prices have also held steady, while demand has increased. The recent rise in ICE cotton has lent support to Indian cotton, which previously suffered due to cheaper global cotton prices. “There was a higher demand from the weaving industry and stockists. Export enquiries from China have lifted market sentiments. Mills and traders will not have to offer deep discount because of improved demand,” a trader from Tiruppur told F2F.
Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹264-270 per kg (excluding GST), 34 count combed cotton yarn at ₹275-280 per kg, 40 count combed cotton yarn at ₹285-292 per kg, 30 count carded cotton yarn at ₹240-245 per kg, 34 count carded cotton yarn at ₹247-252 per kg and 40 count carded cotton yarn at ₹250-257 per kg, as per TexPro.
Meanwhile, in Gujarat, cotton prices have risen due to ginners' reluctance to sell their stocks. Recent increases in ICE cotton have boosted domestic prices, with the natural fibre gaining ₹3,000-3,200 per candy (a unit of 356 kg) in the last week. This price growth has been fuelled by concerns over a drought in Texas, which has impacted ICE cotton prices and, in turn, the domestic market, according to the trade sources.
Sellers' lack of interest at current prices has also served to enhance market sentiment. Cotton was traded at ₹59,000-59,500 per candy, with cotton arrivals in Gujarat estimated at 16,000-17,000 bales of 170 kg and an all-India arrival estimate of around 60,000-65,000 bales of 170 kg.