High cotton prices boost yarn trade in south India

Prices of most of the varieties and counts of cotton yarn remained steady today in the South Indian region, with demand improving in Tiruppur and Mumbai. Few counts were quoted higher due to improved buying. Traders said that the recent rise in ICE cotton encouraged buyers in the entire value chain. However, consumers’ buying has not picked up yet. 

Traders in Mumbai felt that buyers were buying actively but they were cautious due to a lack of confidence. Millers have a huge stock of cotton yarn and there is no hope for price rise for now. “Only 10-20 per cent buyers were active. They are buying from their pocket. Payment from downstream industry is a real issue for the entire industry. Nobody knows when the demand will pick up,” a trader from Mumbai market told Fibre2Fashion. 

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,620-1,650 and ₹1,550-1,570 per 5 kg (GST extra) respectively. 60 combed warp was priced at ₹350-355 per kg. 80 carded (weft) cotton yarn was sold at ₹1,450-1,480 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹300-307 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹290-295 per kg and 40/41 count combed yarn (warp) was priced at ₹312-315 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

In the Tiruppur market, cotton yarn prices remained stable, but demand improved due to an increase in cotton prices. The entire value chain was active as the demand improved in the last couple of days. A trader from Tiruppur told Fibre2Fashion, “Price rise in ICE cotton supported domestic prices. Higher cotton prices encouraged buyers in the value chain, who were keen to buy yarn and fabric as well. However, end users’ buying has not picked up yet. So, we must review the situation every week. Also, demand cannot be predicted for the next week.” 

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 strengthened by ₹1,000 per candy of 356 kg due to an increase in ICE. According to market sources, mills were interested in buying. They are ready to pay higher amounts as they see an upside trend in the natural fibre. Cotton prices were at ₹64,500 to ₹65,000 per candy in Gujarat. Seed cotton was traded at ₹1,800-1,900 per maund of 20 kg while seed at ₹4,000 per quintal. Total arrival was estimated at 16,000-17,000 bales of 170 kg in Gujarat mandis. 

Source: Fibre2Fashion