Cotton yarn continued to see slow demand from downstream industry in South India. Cotton yarn prices eased down by Rs. 2-4 per kg in Tiruppur market, but they remained steady in Mumbai except for 40-41 carded warp yarn which felt pressure of bearish demand. Traders said that there was no indication of ending current sluggish demand. Garment export orders were insignificant to support the market.
Tiruppur market noted fall in cotton yarn prices of Rs. 2-4 per kg because of slower demand. The market could not find any support from export or domestic demand. A trader from Tiruppur market told, “Garment export orders were insignificant to support cotton yarn prices. Although, mills have rolled over yarn prices for this month, but discounts and other types of lower offerings were common to lure buyers. Mills and stockists were feeling pressure to sell their stocks.” 30 count combed cotton yarn was traded at Rs. 276-280 per kg (GST extra), 34 count combed at Rs. 286-290 per kg and 40 count combed at Rs. 303-308 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at Rs. 248-254 per kg, 34 count carded at Rs. 254-258 per kg and 40 count carded at Rs. 261-266 per kg, according to market report.
Mumbai cotton yarn market noted steady trend in the prices for most of the counts and varieties. The market was facing pressure of sluggish demand because of payment crisis. A trader from Mumbai market told F2F, “Downstream industry was feeling payment crisis. There was slower demand in fabric market due to silence of garment units which caused the payment crisis. The problem dried up cash flow in yarn market also.” But yarn prices remained stable after ease in early part of this week. In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at Rs. 1,500-1,530 and Rs. 1,360-1,400 per 5 kg (GST extra) respectively, as per market report. 60 combed warp was priced at Rs. 350-353 per kg. 80 carded (weft) cotton yarn was sold at Rs. 1,460-1,500 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at Rs. 275-280 per kg. 40/41 count carded cotton yarn (warp) was sold at Rs. 260-270 per kg and 40/41 count combed yarn (warp) was priced at Rs. 295-305 per kg. 40/41 count carded cotton yarn (warp) was traded lower by Rs. 5 per kg.
In Gujarat, cotton prices showed upward trend because of rise in ICE cotton. Traders said that spinners were quoting high to purchase cotton, but sellers were reluctant to commit. ICE cotton was traded at $83.49 per pound with gain of 2.18 percent during Asian trading session. Cotton yarn was traded at Rs. 61,500-61,700 per candy of 356 kg. The prices were quoted higher by Rs. 400-500 per candy. Cotton arrival was noted at 25,000-28,000 bales of 170 kg each in Gujarat. All India arrival was estimated around 80,000 bales.
