South India registered mixed trend in cotton yarn amid weaker sentiments. Last week’s upward trend took a pause as fabric buying was weak and stocks are abundant. Cotton yarn prices slipped Rs. 5-10 per kg in Tiruppur because southern mills had cut factory rates as they were forced to bring down prices for want of liquidity. Mumbai maintained stable trend.
Tiruppur market noted down trend in cotton yarn prices. Trade sources said that millers are struggling to meet out their regular expenses. They had to reduce cotton yarn prices to arrange cash for monthly expenses like electric bills, staff salaries and other recurring expenses. Earlier, many mills were quoting very high prices and offering heavy discount on the prices. According to the traders, mills have now reduced cotton yarn rates by Rs. 30 per kg in the beginning of this month. After adjustment of discounts, net decrease was noted around Rs. 8-10 per kg. Therefore, market rates of cotton yarn came down by Rs. 5-10 per kg.” Combed cotton yarn recorded down fall, but carded yarn remained stable. A trader told, “The mills are bearing higher losses on cotton yarn production because they need liquidity. If demand improves, mills may try to limit losses by increasing yarn prices.” Today, 30 count combed cotton yarn was traded at Rs. 350-355 per kg (GST extra), 34 count combed at Rs. 362-367- per kg and 40 count combed at Rs. 365-370 per kg in Tiruppur market. Cotton yarn of 30 count carded was sold at Rs. 312-317 per kg, 34 count carded at Rs. 322-325 per kg and 40 count carded at Rs. 322-335 per kg, according to market insight tool TexPro.
Cotton yarn prices remained stable in Mumbai market, which noted weaker demand from powerloom owners. Cotton yarn prices did not get support from weaving industry due to heavy stocks of fabrics. A broker said that cotton yarn weaving units and powerloom owners have huge stocks of fabric which may last for months. They were happy from recent price rise as they received a window to clear their stocks. But they are not purchasing cotton yarn for further production due to uncertain conditions. According to trade sources, fabric stocks were also depleting as large number of powerlooms remained closed for long time. 60 count carded cotton yarn of warp and weft varieties were traded at Rs. 1,780-1,880 and Rs. 1,640-1,680 per 5 kg (GST extra) respectively. 44/46 count carded cotton yarn (warp) was traded at Rs. 1,700-1,750 per 5 kg. 80 count carded cotton yarn (weft) was sold at Rs. 1,760-1,780 per 4.5 kg. 40/41 count carded cotton yarn (warp) was sold at Rs. 325-332 per kg. 40/41 count combed yarn (warp) was priced at Rs. 380-390 per kg, as per TexPro.
In Gujarat, cotton prices gained due to better buying from spinning mills. Lower arrival also supported cotton prices. cotton prices increased by Rs. 2,000-3,000 per candy of 356 kg since last week. Shankar-6 cotton was traded at Rs. 85,000-91,000 per candy in spot market of Gujarat.
