South India notes slightly better cotton yarn buying after steep fall

Cotton yarn prices continued to follow downtrend in south India. Tiruppur registered a drop of Rs 30-40 per kg in cotton yarn as Tamil Nadu’s spinning mills slashed prices to align with cheaper cotton. Traders said that weavers’ demand improved slightly at lower prices. The prices of cotton yarn may further fall which may support trading activities.

In Tiruppur market, cotton yarn lost Rs 30-40 per kg as mills have reduced their selling prices in the beginning of this month. Mills are adjusting yarn prices after fall in the price of the natural fibre. The market noticed slight improvement in demand. A trader from Tiruppur told Fibre2Fashion, “Demand slightly improved as lower prices attracted buyers. However, improvement in demand was very little. Buyers were not still confident.” Traders feel that downward trend may continue as higher arrival of cotton will drive prices downside. But lowering in prices are attracting weaving industry for new purchases. Today, 30 count combed cotton yarn was traded at Rs 308-315 per kg (GST extra), 34 count combed at Rs 315-320 per kg and 40 count combed at Rs 330-340 per kg in Tiruppur market. Cotton yarn of 30 count carded was sold at Rs 285-290 per kg, 34 count carded at Rs 290-295 per kg and 40 count carded at Rs 300-310 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Mumbai market noted a further drop of Rs 5-10 per kg in cotton yarn prices. Lower price of cotton led to ease in yarn prices. Demand was not supportive in cotton yarn market. Traders expect that lower prices may attract buyers, but the market will have to wait longer. A trader from Mumbai market told Fibre2Fashion, “Prices are likely to fall further in the coming weeks as cotton arrival will pick up. Trade may improve as lower prices will appeal to the buyers.” 60 count carded cotton yarn of warp and weft varieties were traded at Rs 1,600-1,640 and Rs 1,540-1,600 per 5 kg (GST extra) respectively. 60 count combed cotton warp yarn was priced at Rs 365-375 per kg. 80 carded (weft) cotton yarn was sold at Rs 1,540-1,580 per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at Rs 310-315 per kg. 40/41 count carded cotton yarn (warp) was sold at Rs 288-295 per kg. 40/41 count combed yarn (warp) was priced at Rs 315-325 per kg, as per TexPro.

In Gujarat, daily cotton arrival dropped to 9,000-10,000 bales of 170 kg each. Cotton prices remained almost steady in the last couple of days. The benchmark Shankar-6 cotton variety was traded at Rs 69,000-71,000 per candy of 356 kg in spot market of Gujarat. According to a market source, ginning mills are facing disparity due to costlier seed cotton amid lower arrival. Seed cotton was hovering at Rs1,750-1,800 per maund of 20 kg for average quality. Spinning mills remained very cautious for cotton purchases as they expect further price fall in the near future.