South India’s cotton yarn prices decreased recently as demand from end users remained poor. Buyers in the entire textile value chain were cautious amid global slowdown and yarn imports from China. Tiruppur market noted a fall of Rs. 5-7 per kg in carded yarn as Tamil Nadu-based small spinners were under stress. Mumbai also noted a decline in cotton yarn prices.
Cotton yarn prices declined in Mumbai as mills and stockists were trying to clear their stocks. “Mills were under pressure to sell yarn at lower prices despite a rise in cotton prices. Slow buying from consumers was most worrisome for the industry. The global economic slowdown is hurting market sentiments,” a trader from Mumbai told.
In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at Rs. 1,700-1,750 and Rs. 1,610-1,630 per 5 kg (GST extra) respectively. 60 combed warp was priced at Rs. 360-365 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. 313-318 per kg. 40/41 count carded cotton yarn (warp) was sold at Rs. 300-305 per kg and 40/41 count combed yarn (warp) was priced at Rs. 318-325 per kg, according to market report.
Cotton yarn prices dropped in Tiruppur too, as Tamil Nadu’s small spinning mills were under pressure to sell their stock. Therefore, cotton carded yarn lost Rs. 5-7 per kg. Traders said that these carded yarn producing mills increase and decrease prices on short notices. Combed yarn is supplied by North India-based large mills. Additionally, import of cotton yarn from China is hurting market sentiments.
Today, 30 count combed cotton yarn was traded at Rs. 300-305 per kg (GST extra), 34 count combed at Rs. 315-320 per kg and 40 count combed at Rs. 320-325 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at Rs. 270-275 per kg, 34 count carded at Rs. 275-280 per kg and 40 count carded at Rs. 285-290 per kg, as per market report.
In Gujarat, cotton prices increased again as farmers brought limited quantities of seed cotton to the market. According to the traders, farmers were not interested to sell their crop after the fall in cotton prices. The prices of seed cotton and ginned cotton increased despite sluggish buying by the downstream industry. Cotton arrival is estimated to be between 28,000 and 35,000 bales in Gujarat. Cotton was traded at Rs. 68,600-69,00 per candy of 356 kg in Gujarat.