Cotton yarn prices jumped 2-4 per cent in Tiruppur and Mumbai during the last 3-4 days despite muted demand, and costlier cotton caused steep price rise in the yarn market. Many power looms in Bhiwandi and other places were forced to cut their production as fabric demand remained poor. However, cotton yarn prices are likely to witness an upward trend as cotton prices firm up.

Demand from downstream industries is likely to pick up in the second half of the current month. Currently, fabric manufacturers are hand-to-mouth due to poor demand and higher input cost, trade sources told Fibre2Fashion.

In the Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded higher at ₹50-100 to ₹1,920-2,000 and ₹1,700-1,750 per 5 kg, respectively. 80 count carded cotton yarn of weft variety was sold at ₹50-70 to ₹1,900-1,950 per 5 kg. 46 count carded cotton yarn of weft variety was sold at ₹1,740-1,770 per 5 kg which gained ₹130-140 per 5 kg in the market.

Cotton yarn prices jumped 2-4 per cent in Tiruppur and Mumbai during the last 3-4 days despite muted demand, and costlier cotton caused steep price rise in the yarn market. Many power looms in Bhiwandi and other places were forced to cut their production as fabric demand remained poor. However, cotton yarn prices are likely to witness an upward trend.

According to a Mumbai-based broker, demand remained weak, but yarn prices rose due to higher cotton prices. Many power looms were forced to cut down their production due to a weaker demand of fabric. Power loom owners in Bhiwandi were running on one shift to manage the units. They are building a stock of fabrics as there is no demand from garment manufacturers. The demand is expected to increase after Makar Sankranti/Pongal on 14 January. Garment units stop winterwear production in December and begin summer clothes manufacturing after mid-January.

Similarly, in the Tiruppur market, cotton yarn prices jumped up by ₹25 per kg due to high cotton prices. Cotton yarn of 30 count combed was traded in Tiruppur at ₹350-355, 34 count combed at ₹357-362 and 40 count combed at ₹385-390 per kg. Cotton yarn of 30 count carded was sold at ₹320-325, 34 count carded at ₹325-330 and 40 count carded at ₹350-355 per kg, according to Fibre2Fashion’s market analysis tool TexPro. As per the trade sources, demand remained weak as workers are returning to their homes for the Pongal festival on 14 January. But spinners raise yarn prices due to cotton price rise.

Buyers were buying yarn just for immediate need, trade sources told Fibre2Fashion. They were trying to keep their looms running to retain their workers. Spinners’ margin shrank in the last couple of weeks as they could not increase yarn prices, but they have to bear additional cost of production due to higher cotton prices. The prices are likely to rise further when demand picks up.

Domestic markets also witnessed an upward price trend in cotton trade due to weaker supplies in mandis. The prices increased by ₹500-600 per candy (356 kg each) in various market. In north India, cotton prices were ruling at around ₹68,000 per candy, while it was priced between ₹70,000 and ₹72,000 per candy in southern and western states.

Meanwhile, ZCE cotton yarn January 2022 futures traded higher by CNY 225 at CNY 27,185 per ton and May 2022 traded higher by CNY 180 at CNY 27,910 per MT today. ICE cotton futures edge higher on Monday amid robust demand outlook, but further gains were limited by a strong dollar. Cotton contract for March 22 closed at 113.23 cents, up 63 points; May 22 closed at 110.91 cents, up 43 points; and December 22 closed at 92.95 cents, up 30 points.

Fibre2Fashion News Desk (KUL)