Mumbai market registered a drop of ₹5-15 per kg in cotton yarn prices. Buyers were cautious due to low demand from local as well as export markets. “Cotton yarn prices are unlikely to improve this month. Domestic buying may support market sentiments but not before the second week of October. Buying may not improve for export orders as the segment is bearish,” a trader from Mumbai market told Fibre2Fashion.
In the Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,700-1,740 and ₹1,635-1,700 per 5 kg (GST extra) respectively. 60 combed warp was priced at ₹400-420 per kg. 80 carded (weft) cotton yarn was sold at ₹1,700-1,730 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹330-335 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹315-320 per kg and 40/41 count combed yarn (warp) was priced at ₹362-368 per kg, according to Fibre2Fashion’s market insight tool TexPro.
Cotton yarn prices have declined further in South India today as demand from the downstream industry continues to be low. Cotton yarn prices have eased by ₹5-15 per kg in the Mumbai market and by ₹3-7 per kg in Tamil Nadu’s Tiruppur market. Traders feel that cotton yarn demand is not likely to pick up before the second week of the next month.
Muted demand in the Tiruppur market also caused cotton yarn prices to decline further in the region. A trader from Tiruppur told Fibre2Fashion, “Poor demand is a very serious problem for the yarn market. New cotton arrival and low prices are responsible for the decline in yarn prices.” Even the speculation of crop delay was unable to boost market sentiments.
In the Tiruppur market, cotton yarn prices went down by ₹3-7 per kg. Today, 30 count combed cotton yarn was traded at ₹345-350 per kg (GST extra), 34 count combed at ₹357-360- per kg and 40 count combed at ₹360-365 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 ₹330-335 per kg, as per TexPro.
In Gujarat, cotton prices further declined by ₹5,000-7,000 per candy of 356 kg. Shankar-6 cotton of last season was traded at ₹75,000-83,000 per candy in the spot market of Gujarat. Around 1,200-1,500 bales of new cotton have arrived in Gujarat, which should have reached 4,000-5,000 bales by now. The low arrival is due to the delay caused by heavy rains. A broker from Rajkot, Chetan Bhojani, said that rains are expected in the last week of this month which is crucial for the crop. If the state witnesses heavy rains, cotton crop arrival may further be delayed. Cotton arrival is unlikely to pick up before November. He added that mild rains may boost the crop.
Fibre2Fashion News Desk (KUL)