Cotton yarn prices of major varieties gained further today in Indian textile hubs of Mumbai and Tiruppur. In Mumbai market, the price of cotton yarn increased by ₹20-40 per 5 kg, while in Tiruppur, the price rose by ₹2-8 per kg. However, traders expect the current upward trend to be short lived as market will get disrupted post GST hike from January 1, 2022.

In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,820-1,944 and ₹1,620-1,680 per 5 kg respectively, while 80 count carded cotton yarn of weft variety was quoted at ₹1,850-1,880 per 5 kg, and 46 count carded cotton yarn of weft variety was sold at ₹1,600-1,640 per 5 kg. A Mumbai-based broker BN Ladda told Fibre2Fashion that the prices increased by ₹20-40 per 5 kg in the last few days. According to him, cotton yarn prices gained due to the proposed GST hike. Better demand also supported the price gain.

Ahmedabad-based broker Ramesh Chhabaria said that fabric manufacturers are overwhelmed with orders. “They have orders for next 2-3 months for fabrics production. They have good orders from apparel manufacturers for both domestic and export orders.” 

Cotton yarn prices of major varieties gained further today in Indian textile hubs of Mumbai and Tiruppur. In Mumbai market, the price of cotton yarn increased by ₹20-40 per 5 kg, while in Tiruppur, the price rose by ₹2-8 per kg. However, traders expect the current upward trend to be short lived as market will get disrupted post GST hike from January 1, 2022.

In Tiruppur market, cotton yarn prices remained bullish as higher cotton prices forced spinners to raise their yarn prices by around ₹2-8 per kg. Cotton yarn 30 count combed was traded in Tiruppur at ₹330-335, 34 count combed at ₹340-345 and 40 count combed at ₹360-365 per kg. Cotton yarn of 30 count carded was sold at ₹300-305, 34 count carded at ₹315-320 and 40 count carded at ₹330-335 per kg, according to Fibre2Fashion’s market analysis tool TexPro. Trade sources said that spinners quoted higher prices due to costlier cotton and the proposed GST hike. There was average demand to support current price rise.

Meanwhile, ICE cotton futures posted a triple digit gain on Monday, reflecting positive trend in the financial and oil markets, and a robust demand outlook for the natural fibre. Cotton contracts for March 2022 closed at 112.28 cents, up 316 points; May 2022 closed at 109.83 cents, up 278 points; December 2022 closed at 91.94 cents, up 123 points. Domestic markets also witnessed upward price trend in cotton trade due to higher demand from spinning mills. ZCE cotton yarn January 2022 futures traded higher by CNY 245 at CNY 27,065 per ton and May 2022 traded higher by CNY 330 at CNY 27,230 per MT today. 

Fibre2Fashion News Desk (KUL)