South Indian traders are seeking more positive sentiment in the yarn trade. A surge in cotton prices has stimulated yarn buying from the weaving industry, while cotton prices in Mumbai have held steady in the face of increased buying. Expectations are high in south India’s Tiruppur market for further demand for cotton yarn, which could push prices upward. However, cotton yarn prices in Tiruppur have decreased by Rs. 5-7 per kg following a monthly review by spinning mills. These mills reduced the ex-mill rate by Rs. 20 per kg.
In Mumbai, despite increased demand, cotton yarn prices remained unchanged. Weavers have been purchasing yarn in preparation for ramping up production to accommodate their workforce. The recent uptick in cotton prices has also motivated them to buy. A Mumbai market trader told, “Cotton yarn prices steadied at current level because of better demand. After summer holidays, workers are back in power looms. It will improve weaving activities. Higher buying activities in yarn are a good sign for the entire value chain.”
In Mumbai, 60 count carded cotton yarn of warp and weft varieties was sold at Rs. 1,420-1,445 and Rs. 1,290-1,330 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at Rs. 325-330 per kg, 80 carded (weft) cotton yarn at Rs. 1,325-1,350 per 4.5 kg, 44/46 count carded cotton yarn (warp) at Rs. 254-260 per kg, 40/41 count carded cotton yarn (warp) at Rs. 244-248 per kg and 40/41 count combed yarn (warp) at Rs. 270-275 per kg, according to market report.
Cotton yarn prices in the Tiruppur market initially fell by Rs. 5-7 per kg at the beginning of the month. Mills had cut yarn prices by Rs. 20 per kg for the month. However, after taking into account the existing discounts, the actual price drop amounted to Rs. 5-7 per kg. A trader from Tiruppur told, “Currently, sellers need to clear some stock. After a decrease in prices, demand improved as weavers were actively enquiring for fresh purchases. If cotton prices increase further, yarn will also attract stronger buying, which can support prices.”
Prices in the Tiruppur market were noted as 30 count combed cotton yarn at Rs. 255-262 per kg (excluding GST), 34 count combed cotton yarn at Rs. 265-272 per kg, 40 count combed cotton yarn at Rs. 275-282 per kg, 30 count carded cotton yarn at Rs. 233-238 per kg, 34 count carded cotton yarn at Rs. 241-247 per kg and 40 count carded cotton yarn at Rs. 245-252 per kg, as per market report.
In Gujarat, cotton prices saw further gains due to slower arrival and higher demand. Traders suggested that the strong ICE cotton market was driving domestic sentiment. Spinning mills are buying cotton aggressively, but the slower arrival rate has pushed up cotton prices. Cotton prices have risen by a further Rs. 500 per candy of 356 kg this week, with cotton trading at Rs. 56,500-57,000 per candy of 356 kg. Cotton arrival in Gujarat is well within 10,000 bales of 170 kg, and all-India arrival is estimated at 35,000 bales.