Cotton yarn prices in south India likely to rise next week

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    The cotton yarn demand in south India remained bearish as hundreds of small and medium units have scaled down their production due to the Pongal festival season. Few varieties of cotton yarn were traded at slightly lower price, but other varieties were sold at previous prices in Tiruppur market. Traders expect prices to pick up after festivities next week.

    In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded steady at ₹1,910-1,990 per 5 kg and ₹1,690-1,740 per 5 kg respectively. 80 count carded cotton yarn of weft variety was sold at ₹1,890-1,940 per 5 kg, while carded cotton yarn (46 count) of weft variety was sold at ₹1,730-1,760 per 5 kg. In Ahmedabad-Rajkot region, cotton compact hosiery grey yarn 30/1 was quoted at ₹357 per kg and 30/1 weaving yarn at ₹365 per kg.

    In Tiruppur market, cotton yarn prices remained steady despite poor demand. Cotton yarn of 30 count combed was traded in Tiruppur at ₹350-360 per kg, 34 count combed at ₹360-365 per kg, and 40 count combed at ₹390-395 per kg. Cotton yarn of 30 count carded was sold at ₹320-325 per kg, 34 count carded at ₹325-330 per kg, and 40 count carded at ₹345-350 per kg, according to Fibre2Fashion’s market analysis tool TexPro. Prices of cotton yarn of 30 count carded and 40 count carded declined by ₹5 per kg due to poor demand.

    The cotton yarn demand in south India remained bearish as hundreds of small and medium units have scaled down their production due to the Pongal festival season. Few varieties of cotton yarn were traded at slightly lower price, but other varieties were sold at previous prices in Tiruppur market. Traders expect prices to pick up after festivities next week.

    In Tiruppur, workers have gone on holiday to celebrate Pongal and other regional festivals. “They will come back after one week. So, production activities will pick up next week in Tiruppur, Coimbatore and other textile hubs,” a Tiruppur-based trader told Fibre2Fashion. “Cotton yarn price rise is inevitable when buyers come back to the markets. They have to buy yarn at any cost as they have to fulfil summer clothing demand.”

    A trader from Ahmedabad, Narayan Lakhotia told Fibre2Fashion that cotton yarn prices remained steady as demand was very weak. “But the scenario will change at the end of this month. Fabric manufacturers will have to buy yarn at higher prices to meet demand from downstream industry. Demand for summer clothing will be good, so the prices are expected to rise for the entire value chain of textile industry.”

    ZCE cotton yarn January 2022 futures traded lower by CNY 90 at CNY 27,640 per ton and May 2022 traded steady at CNY 28,525 per MT today. ICE cotton futures were firm on Monday, as traders were waiting for the direction from the USDA’s monthly supply and demand report, which is due later this week. Cotton contract for March 2022 closed at 115.22 cents, up 10 points; May 2022 closed at 113.07 cents, up 19 points; and December 2022 closed at 94.92 cents, up 40 points.

    Domestic markets witnessed bearish to steady trend in cotton trade due to subdued demand from spinners and stable arrivals in mandis. In Guntur mandi of Andhra Pradesh, cotton (30+ MM 75 RD) was traded between ₹75,500-77,000 per candy of 356 kg, while 29+ MM cotton was sold at ₹73,000-75,400 per candy. In Warangal mandi of Telangana, 29+ MM Cotton was traded at ₹74,000-76,500 per candy and 28+ MM cotton at ₹73,000-73,500 per candy.

    Fibre2Fashion News Desk (KUL)





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