South India’s cotton yarn trade has taken cues from north India’s upward trend today. Cotton yarn prices rose by ₹5-7 per kg in Mumbai as mills increased the selling prices. Many mills observed muted selling to avoid losses. According to industry estimates, mills are facing a disparity of ₹20-25 per kg. Buying improved in Tiruppur but prices remained steady.
“The entire value chain was facing a disparity due to costlier cotton. Recent hike in the natural fibre increased production cost of spinning mills. However, buyers are coming to the market as arrival season has encouraged them. Mills are not too keen on selling at current prices. Therefore, yarn prices found support from supply, while demand continued to remain muted,” a trader from Mumbai told Fibre2Fashion.
In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,720-1,770 and ₹1,650-1,670 per 5 kg (GST extra), respectively. 60 combed warp was priced at ₹360-365 per kg. 80 carded (weft) cotton yarn was sold at ₹1,540-1,580 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹318-323 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹305-310 per kg and 40/41 count combed yarn (warp) was priced at ₹325-330 per kg, according to Fibre2Fashion’s market insight tool TexPro.
Prices of cotton yarn remained stable in the Tiruppur market. As buyers were cautious, only sporadic buying was seen amid the season’s arrival. Traders said that disparity in textile value chain was not good for the industry. Today, 30 count combed cotton yarn was traded at ₹305-310 per kg (GST extra), 34 count combed at ₹315-320 per kg and 40 count combed at ₹320-325 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at ₹275-280 per kg, 34 count carded at ₹282-285 per kg and 40 count carded at ₹292-295 per kg, as per TexPro.
In Gujarat, cotton prices eased since Monday after a steep rise last week. Prices came down by ₹500 per candy of 356 kg. The declining trend in ICE cotton caused cotton prices to go southwards. According to the traders, ginners are facing a disparity of ₹3,000-4,000 per candy due to costlier seed cotton (kapas) which eased by ₹10 to reach ₹1,890 per maund of 20 kg. Therefore, ginners are buying kapas in limited quantity. The same trend is witnessed in cotton buying by spinning mills. Cotton prices were noted at ₹67,500-69,000 per candy in Gujarat. Seed cotton was traded at ₹1,800-1,890 per maund. Total arrival was estimated at 28,000-33,000 bales of 170 kg in Gujarat mandis.
Source: Fibre2Fashion
