Can festival season boost south India’s bearish cotton yarn market?

Slow demand continued in south Indian cotton yarn market today. Cotton yarn prices steadied in Tamil Nadu’s Tiruppur market, while Mumbai noted a further drop of RS 5-8 per kg. Traders said that there will not be any improvement in market confidence this month. Cotton yarn may see better demand next month as festival season could boost market sentiments. 

The Mumbai market witnessed a fall of RS 5-8 per kg in cotton yarn prices. Buyers stayed away from the market as they were not sure about buying from the downstream industry. A trader from Mumbai market told Fibre2Fashion, “There is no signal of improvement in buying in the last week of this month. Let’s hope for better market sentiments next month. The upcoming festivals may boost buyers’ perception about future demand.” 

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at RS 1,690-1,720 and RS1,600-1,630 per 5 kg (GST extra) respectively. 60 combed warp was priced at RS 390-410 per kg. 80 carded (weft) cotton yarn was sold at RS 1,600-1,630 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at RS 330-335 per kg. 40/41 count carded cotton yarn (warp) was sold at RS 305-315 per kg and 40/41 count combed yarn (warp) was priced at RS 352-358 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

In the Tiruppur market, cotton yarn prices remained stable as there was no sign of demand. Sellers were not keen to decrease prices to sell their cotton yarn. “The market noted stability in cotton yarn prices as sellers were also silent amid weak demand. The direction that cotton yarn prices take next week will depend largely on buyers’ interest,” a trader from Tiruppur told Fibre2Fashion.

Today, 30 count combed cotton yarn was traded at RS 345-350 per kg (GST extra), 34 count combed at RS 357-360- per kg and 40 count combed at RS 360-365 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at RS 320-325 per kg, 34 count carded at RS 325-330 per kg and 40 count carded at RS 330-335 per kg, as per TexPro. 

In Gujarat, cotton prices further declined by RS 2,000-3,000 per candy of 356 kg. Shankar-6 cotton of previous season was traded at RS 75,000-80,000 per candy in the spot market of Gujarat. There was clear weather in central part of the country so new cotton was also regular which is dampening market sentiments. However, the market stayed in the wait-and-watch mode as there are forecasts of heavy rains during the last week of the current month in Gujarat and Maharashtra. North India has been witnessing heavy to moderate rains for the last two-three days.