Cotton yarn prices have further decreased in the market of South India. The market has not seen any improvement in purchases from the consumer industry and export market. A downward trend in cotton in both domestic and global markets has also dampened sentiments in yarn trade. Cotton yarn prices have dropped by Rs. 3-5 per kg in the Mumbai market, and the Tiruppur market has recorded a decrease of Rs. 2-3 per kg. Traders suggest that, although a collective call for the closure of spinning mills may not be effective, if current conditions persist, it may lead to the shutdown of weaker yarn production units.
In Mumbai, cotton yarn prices fell by Rs. 3-5 per kg due to the lack of improvement in demand. A situation akin to panic has arisen among traders and spinners. A trader from the Mumbai market, speaking to, revealed, “There was pressure on mills and stockists to offer lower prices to attract buyers. Buyers have been very cautious, purchasing cotton yarn only for immediate needs.”
In Mumbai, 60 count carded cotton yarn of warp and weft varieties was sold at Rs. 1,425-1,450 and Rs. 1,300-1,340 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at Rs. 330-335 per kg, 80 carded (weft) cotton yarn at Rs. 1,380-1,400 per 4.5 kg, 44/46 count carded cotton yarn (warp) at Rs. 258-268 per kg, 40/41 count carded cotton yarn (warp) at Rs. 252-260 per kg and 40/41 count combed yarn (warp) at Rs. 275-280 per kg, according to market report.
In the Tiruppur market, cotton yarn prices dropped by Rs. 2-3 per kg. Cotton yarn prices have decreased due to weak sentiment regarding raw materials. The natural fibre has seen a downward trend in prices not only in ICE futures, but also in domestic futures. A trader from Tiruppur told, “The market did not find support from the consumer industry and export market. If demand does not pick up, weaker mills may have to close production. The market could find support if all the mills in the country stopped their production for at least 8-10 days. Calls for the closure of mills on a regional basis may not work.”
Prices in the Tiruppur market were noted as 30 count combed cotton yarn at Rs. 262-268 per kg (excluding GST), 34 count combed cotton yarn at Rs. 273-280 per kg, 40 count combed cotton yarn at Rs. 283-290 per kg, 30 count carded cotton yarn at Rs. 240-245 per kg, 34 count carded cotton yarn at Rs. 247-252 per kg and 40 count carded cotton yarn at Rs. 250-257 per kg, as per market report.
In Gujarat, cotton prices have dropped by Rs. 1,000 per candy of 356 kg in the last couple of days. Weak sentiments in ICE cotton yarn and slow buying from spinning are responsible for the decrease in the natural fibre. Cotton traded at Rs. 56,500-57,000 per candy of 356 kg. The cotton arrival was estimated at around 20,000-22,000 bales of 170 kg in Gujarat, with an all-India arrival estimate of 40,000-45,000 bales.
