Source: Fibre2Fashion.com

27 Sep '22

(Fibre2Fashion News Desk (KUL): Cotton yarn prices declined by ₹2-5 per kg today in south India as demand did not improve from last week. However, Mumbai witnessed a slightly improved buying in fabrics segment.

The cotton yarn market is facing a weak demand as buyers are not confident about future buying. Traders feel that buyers are anticipating a fall in cotton prices on peak arrival. 

The Mumbai market noted a further fall of ₹2-3 per kg in cotton yarn prices. Although the sentiments remained weak for cotton yarn, the fabrics segment showed a slight improvement. “Cotton yarn prices further dropped by ₹2-3 per kg as weavers’ buying was muted. But garment units were active in buying fabrics.

We must assess how the market moves in the days to come. Few mills attempted to raise yarn prices by ₹1-2 per kg but no trade seems to have taken place at higher prices,” a trader from Mumbai market told Fibre2Fashion.

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,680-1,710 and ₹1,590-1,620 per 5 kg (GST extra) respectively.

60 combed warp was priced at ₹388-405 per kg. 80 carded (weft) cotton yarn was sold at ₹1,590-1,620 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹328-333 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹303-312 per kg and 40/41 count combed yarn (warp) was priced at ₹350-355 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

In Tiruppur market, cotton yarn prices declined by ₹2-5 per kg as there was no sign of higher demand. Buyers are hesitant about fresh buying as they are trying to remain hand-to-mouth and focusing on stock clearance.

A trader from Tiruppur told Fibre2Fashion, “Buyers expect a sharp fall in cotton prices during the peak season of new arrival. So, they do not want to incur losses, but are trying to hold on buying raw material.” 

Today, 30 count combed cotton yarn was traded at ₹342-345 per kg (GST extra), 34 count combed at ₹352-355 per kg and 40 count combed at ₹355-360 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at ₹315-320 per kg, 34 count carded at ₹322-325 per kg and 40 count carded at ₹327-332 per kg, as per TexPro. 

In Gujarat, new cotton arrival increased, and daily arrival reached 6,000 bales of 170 kg. Cotton prices were slightly low after the beginning of new arrival. Shankar-6 cotton of new season was traded at ₹73,000-75,000 per candy of 356 kg in the spot market of Gujarat.

Ginning mills have started buying seed cotton with the advent of the auspicious festival of Navratri yesterday. However, spinning mills are cautious as they expect a downward trend in cotton prices during peak arrival. (Source: Fibre2Fashion.com)