Cotton yarn prices crashed today in south India as demand from both domestic and exports markets dried up because buyers were not keen on taking any risk in view of the looming uncertainty of geo-political developments after Russian attack on Ukraine. Buyers preferred to adopt a wait-and-watch policy while they assess the situation on the trade front.
“Crude oil is the only cause of concern for the Indian textile industry due to its inflationary impact. Currently, there is no major impact on exports as Russia and Ukraine are not major market for Indian exporters. Hopefully, the conflict will not extend to other countries. But, if the war prolongs and expands, things may move in reverse. So, domestic textile industry is taking a cautious approach at present, TT Limited managing director Sanjay K Jain told Fibre2Fashion.
A broker from Mumbai, BN Ladda, said that cotton yarn prices fell down up to ₹12 per kg as buyers were absent from the market. He told that around 60 percent powerlooms have closed down temporarily as demand from garment industry has dried up. Therefore, spinning millers, traders and stockists have come under pressure to sell on lower prices. According to market sources, buyers in the entire value chain of textile sector are cautious for fresh buying.
In Mumbai market, yarn prices fell down by ₹5-12 per kg as demand weakened further. However, 80 carded weft yarn showed upward trend due to scarcity of supply. 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,910-1,960 per 5 kg and ₹1,680-1,730 per 5 kg respectively. 80 count carded cotton yarn of weft variety was sold at ₹1,900-1,950 per 4.5 kg. Carded cotton yarn (44/46 count) of warp variety was traded steady at ₹1,730-1,770 per 5 kg.
Tiruppur market recorded fall of ₹3-8 per kg in prices of all the varieties of cotton yarn. 30 count combed cotton yarn was traded at ₹360-370 per kg, 34 count combed at ₹367-374 per kg and 40 count combed at ₹395-405 per kg. Cotton yarn of 30 count carded was sold at ₹320-325 per kg, 34 count carded at ₹322-327 per kg and 40 count carded at ₹340-350 per kg, according to Fibre2Fashion’s market insight tool TexPro.
In the global market, ZCE cotton yarn May 2022 futures traded lower by CNY 85 at CNY 28,310 per ton and September 2022 traded down by CNY 295 at CNY 27,740 per MT today. ZCE cotton March declined by CNY 125 to CNY 21,165 per MT and May contract traded down by CNY 105 at CNY 20,365 per MT.