Spinning mills in central and south India are desperately looking to clear their stocks amid poor buying. They were willing to offer discounts to traders and buyers purchasing in large quantities. Cotton yarn prices weakened further for some varieties and counts in Mumbai. Cotton yarn buying will improve only if demand from downstream industry improves.
Mumbai market witnessed a decrease of ₹2-5 per kg for some of the counts and varieties of cotton yarn. Demand remained weak from the weaving industry because they are unsure if buying will improve. “Spinning mills were calling brokers and traders to buy their stock. They insisted on offering discounts on purchases and negotiating prices. But meagre discounts cannot boost market sentiments.” a trader from Mumbai told. However, improved buying or price cuts in raw materials can strengthen market sentiments.
In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,700-1,750 and ₹1,610-1,630 per 5 kg (GST extra), respectively. 60 count combed warp was priced at ₹360-365 per kg. 80 carded (weft) cotton yarn was sold at ₹1,530-1,570 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹313-318 per kg. 40/41 count carded cotton yarn (warp) was sold at ₹300-305 per kg and 40/41 count combed yarn (warp) was priced at ₹315-320 per kg, according to market report.
Tiruppur’s cotton yarn market remained bearish. Traders said that smaller spinning mills were desperate to sell their cotton yarn. They are offering heavy discounts, although they did not decrease the prices of yarn in the beginning of this month. There is a lack of confidence regarding future buying from the downstream industry.
Today, 30 count combed cotton yarn was traded at ₹300-305 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 ₹270-275 per kg, 34 count carded at ₹275-280 per kg and 40 count carded at ₹285-290 per kg, as per market report.
In Gujarat, cotton was traded at ₹66,700-67,200 per candy of 356 kg. The prices decreased by around ₹2,000 per candy since earlier. Spinning mills were not interested in buying at higher prices. According to the traders, yarn prices are facing poor demand from the weaving industry, therefore, spinners have cut down on buying at higher prices. Price disparity is discouraging consumer industry from buying.