Cotton yarn prices in South India continued to remain stable despite limited trade, with the market expected to remain quiet until the end of March. While there has been some demand from the school uniform segment, it has not been enough to support the yarn market. In Mumbai and Tiruppur, cotton yarn was traded at previous prices.
In Mumbai, the cotton yarn market is steady, but demand from the downstream industry is not expected to rise until the end of this month. “The current muted trend of the market was expected, as it happens every year. However, there is some demand from the school uniform segment, which is showing changing dynamics in the market. The raw material for school uniforms changes quickly and there is a focus on lower cost, which limits the varieties of yarn used in the garment segment,” a trader from Mumbai told.
In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at Rs. 1,525-1,540 and Rs. 1,400-1,450 per 5 kg (GST extra), respectively. The 60 combed warp was priced at Rs. 342-345 per kg. 80 carded (weft) cotton yarn was sold at Rs. 1,440-1,480 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at Rs. 280-285 per kg. 40/41 count carded cotton yarn (warp) was sold at Rs. 260-268 per kg, and 40/41 count combed yarn (warp) was priced at Rs. 290-303 per kg, according to market report.
Tiruppur’ cotton yarn market has also witnessed stability in prices. Market sentiments remain weak in the last week of the current fiscal. When asked about demand from the school uniform segment, one trader said that the market in India is so vast that the school uniform segment is too small to support the entire yarn market. Prices are not expected to receive support in the near future.
In the Tiruppur market, 30 count combed cotton yarn was traded at Rs. 280-285 per kg (GST extra), 34 count combed at Rs. 292-297 per kg, and 40 count combed at Rs. 308-312 per kg. Cotton yarn of 30 count carded was sold at Rs. 255-260 per kg, 34 count carded at Rs. 265-270 per kg, and 40 count carded at Rs. 270-275 per kg, as per market report.
In Gujarat, cotton was priced at Rs. 60,700-61,500 per candy of 356 kg, a gain of Rs. 200-300 per candy due to higher buying from spinning mills. Trade sources said that spinners were keen to buy cotton at higher prices, even though the mills are facing lower demand from the downstream industry. Aggressive buying from mills shows that they are trying to build stock for the off-season period. The cotton arrival in Gujarat was estimated at 25,000 bales of 170 kg, while the all-India arrival was estimated at one lakh bales.
