-By Mansi Suryavanshi.
INSIGHTS
The cotton yarn market in South India had a downturn as prices fell by 2 to 5 rupees per kilogramme in Tiruppur but held steady in Mumbai.
Due to the increase in ICE cotton prices, importers expressed interest.
Chinese buyers placed orders with Gujarati mills.
If ICE cotton stays high, traders expect support, but fabric demand is essential for the yarn market.
The cotton yarn market in South India remained negative. Prices of cotton yarn decreased by $2 to $5 per kilogramme in Tiruppur, Tamil Nadu, while being steady in Mumbai. Since the price of ICE cotton has increased, there have been some inquiries from importers for cotton yarn. China has placed certain orders with Gujarati mills for the supply of cotton yarn. In the coming two weeks, traders anticipate domestic market support if ICE cotton maintains strong. However, other dealers believe that the yarn market needs help from the need for fabrics.
Cotton yarn prices dropped by 2 to 5 rupees per kg in the Tiruppur market as mills and dealers were compelled to slash their pricing. Due to a decline in demand from the textile and apparel industries, they were having trouble finding purchasers. However, the stronger ICE cotton gave traders hope. According to a dealer from Tiruppur, “Demand for Indian cotton and yarn may increase if ICE cotton continues to be stronger. Some inquiries have been made to spinning mills. The supply of cotton yarn has already been ordered by Gujarati mills. At least two weeks will pass before the market reacts favorably.
According to Fibre2Fashion’s market insight tool TexPro, prices for 30 count combed cotton yarn, 34 count combed cotton yarn, 40 count combed cotton yarn, and 30 count carded cotton yarn in the Tiruppur market were noted at $268 to $273 per kg (excluding GST), 280 to $285 per kg, 290 to $295 per kg, and 242 to 246 per kg, respectively.
Due to little demand, cotton yarn prices in Mumbai remained stable. The effect of the export orders that Gujarat-based mills had received was being assessed by traders. According to market sources, carded and carded compact yarn in counts of 21, 30, 31, and 32 will be sold to China. However, the demand for completed and gray cloth was relatively low, which is a crucial foundation for market sentiment. Traders and mills are suffering losses. 5,000 MT (200 containers) of cotton yarn, according to sources, will be sold to China. However, because there are divergent views on the effects of the export order, the market has not yet reacted to the event.
Prices for warp and weft variants of 60 count carded cotton yarn in Mumbai were steady at 1,480-1,515 and 1,340-1,380 per 5 kg (excluding of GST), respectively. According to TexPro, other prices range from $345 to $350 per kg for 60 combed warp, $1,440 to $1,480 per 4.5 kg for 80 carded (weft) cotton yarn, $258 to $268 per kg for 40/41 count carded cotton yarn, and $282 to $286 per kg for 40/41 count combed yarn (warp).
In Gujarat, cotton prices were constant despite news of orders for yarn export from China. Trade sources claim that spinning mills have not yet made a decision about future demand and are still wary of expanding their purchases. There isn’t much buying going on right now. Arrival of cotton was also constrained. The price of cotton was 59,000–60,000 each confection weighing 356 kg. The projected arrival of cotton in Gujarat was 24,000–26,000 170 kilogramme bales, while the estimated arrival in all of India was 90,000–95 kg bales.
