Cotton yarn stays bearish in south India despite better export orders

Mumbai market witnessed a decline of ₹10 per kg in cotton yarn prices during the last one week. A trader from Mumbai told Fibre2Fashion, “Cotton yarn trade remained bearish because of slower demand from domestic industry. The market did not respond positively to reports of higher export orders.” In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,590-1,630 and ₹1,480-1,530 per 5 kg (GST extra) respectively. According to Fibre2Fashion’s market insight tool TexPro, 60 combed warp was priced at ₹345-350 per kg. 80 carded (weft) cotton yarn was sold at ₹1,450-1,470 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹285-290 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹272-278 per kg, and 40/41 count combed yarn (warp) was priced at ₹290-295 per kg.

South Indian cotton yarn market remained bearish despite reports of better export orders from China and other countries. Cotton yarn prices slipped by ₹5-10 per kg in Mumbai, Tiruppur and some other markets of south India during the last one week. Traders said that poor demand from downstream industry and lower cotton arrival were still challenging issues.

Tiruppur market also showed weakness in prices of cotton yarn. Poor demand pulled down yarn prices by ₹5-10 per kg. Traders said that spinners received some export orders at lower prices. Recent fall in cotton let them to export yarn without losses. However, it is not an indication of better demand because mills accepted the rates just for clearance of their stocks. Today, 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 at ₹61,000 to ₹ 61,500 per candy of 356 kg. The prices appreciated by ₹1,000-1,200 per candy after easing in last week. According to traders, cotton prices rose by around 2 per cent, while seed cotton (Narma or Kapas) jumped 4 per cent. Therefore, parity at ginning and spinning level again vanished after the rise in price of Kapas.

Fibre2Fashion News Desk (KUL)