Demand for cotton yarn likely to pick up next month in south India

There was no improvement in prices in Tiruppur market, which had seen downward trend in the beginning of this week. Trade sources said that spinning mills are forced to reduce yarn price in the absence of demand. In addition, international and domestic cotton prices had seen downward trend in last one week. This also encouraged spinners to reduce prices as their cost of production also eased down.

In Tiruppur, 30 count combed cotton yarn was traded at ₹365-375 per kg, 34 count combed at ₹375-385 per kg and 40 count combed at ₹400-410 per kg. Cotton yarn of 30 count carded was sold at ₹325-330 per kg, 34 count carded at ₹330-340 per kg and 40 count carded at ₹345-355 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Mumbai market also noted steady trend amid sluggish demand. Traders expect decline in coming weeks as demand is not likely to improve in this month. BN Ladda, a Mumbai-based broker, told Fibre2Fashion that summer clothing market is not likely to pick up in February, therefore the market can witness downward trend in the days to come. Traders said that powerloom owners will have to maintain sufficient stock as they do not have large inventory of grey fabric.

In Mumbai market, cotton yarn was traded at previous levels today. 60 count carded cotton yarn of warp and weft varieties were traded steady at ₹1,930-1,990 per 5 kg and ₹1,670-1,730 per 5 kg respectively. 80 count carded cotton yarn of weft variety was sold at ₹1,860-1,900 per 4.5 kg. Carded cotton yarn (44/46 count) of warp variety was traded steady at ₹1,720-1,740 per 5 kg.

In the global market, ZCE cotton yarn May 2022 futures traded lower by CNY 60 to CNY 28,300 per ton and September 2022 traded flat at CNY 27,895 per MT today. ZCE cotton March gained by CNY 55 to CNY 21,620 per MT and May contract traded up by CNY 5 at CNY 21,215 per MT. ICE cotton futures closed mixed on Thursday amid technical selling and geopolitical concerns. Cotton contract for March 2022 closed at 121.93 cents, up 2 points; May 2022 closed at 119.52 cents, up 3 points; December 2022 closed at 102.31 cents, down 51 points.

Meanwhile, cotton prices remained steady in Maharashtra on Friday amid limited buying by spinning mills, while daily arrivals registered a decline. In Nagpur and Yavatmal line, 30 mm cotton was priced at ₹80,500-81,000 per candy of 356 kg, 29.5 mm at ₹79,500-80,000 per candy and 29 mm variety cotton at ₹78,500-79,000 per candy. In Marathwada-Khandesh line, 29 mm RD 75 variety cotton was priced at ₹76,500-79,000 per candy. In Akola line, 29 mm cotton was sold at ₹78,000-79,000 per candy and 28.5 plus cotton at ₹76,500-77,500 per candy.

Fibre2Fashion News Desk (KUL)