Costlier cotton continues to push yarn prices up in south India

Mumbai market recorded price rise of ₹20-25 per kg amid weak demand, while Tiruppur noted price rise of up to ₹15 per kg in cotton yarn.

A broker from Mumbai told Fibre2Fashion, “Millers are increasing selling prices constantly to pass on price rise of cotton. They are unable to absorb exorbitant price rise of cotton.” But market prices of yarn are ruling lower because stockists and traders are selling previously bought old stock. According to traders, stockists are also increasing prices with millers. As millers increased yarn prices due to costlier cotton, market prices also increased. Yet, there is price difference of around ₹10-20 per kg between market price and millers’ rate.

In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹2,150-2,250 and ₹1,900-2,050 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,950-2,050 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹2,100-2,150 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹361-367 per kg. 40 count combed yarn (warp) was priced at ₹405-425 per kg.

Cotton yarn prices gained ₹5-15 per kg in Tiruppur market also. Millers are further increasing yarn prices. South Indian mills were silent after steep price rise of ₹40 per kg in the last month. But traders said that cotton prices rose further in the last fortnight, so mills have increased their yarn prices. However, demand remained poor as buyers are reluctant for fresh buying. According to traders, uncertain demand scenario is discouraging buyers in the entire value chain.

In Tiruppur market, 30 count combed cotton yarn was traded at ₹435-445 per kg (GST extra), 34 count combed at ₹445-450 per kg and 40 count combed at ₹470-480 per kg. Cotton yarn of 30 count carded was sold at ₹390-400 per kg, 34 count carded at ₹410-420 per kg and 40 count carded at ₹415-425 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In the global market, ZCE cotton yarn September 2022 futures traded down by CNY 40 at CNY 27,665 per ton and January 2023 contract was steady at CNY 27,500 per MT today. ZCE cotton September contract gained CNY 30 to CNY 21,290 per MT and January 2023 contract was traded up by CNY 80 at CNY 20,875 per MT.

ICE cotton futures settled Monday’s session lower after high volatility between positive and negative zones, as sporadic buying deals provided optimism which was washed away by the dollar’s strength. Cotton contracts for July was down 0.68 cents to 142.93 cents per lb. December contract traded at US cent 123.63 per pound with loss of 0.11 cent.

ICE cotton prices recorded triple digit gains after the release of US Department of Agriculture (USDA) crop report, which was viewed as positive. In addition, the weather for West Texas remains doggedly hot and dry. ICE July cotton settled higher by 1.93 cents to 145.53 cents per pound and December contract closed higher by 2.92 cent at 127.67 cents per pound.

In Gujarat, cotton prices increased further in the last three days. No arrival was reported on Thursday. A grade cotton was traded at ₹99,500 to ₹100,300 per candy of 356 kg, B grade cotton at ₹98,500 to ₹99,000 per candy and average grade cotton at ₹95,000 to ₹96,500 per candy. V797 variety was quoted at ₹53,000 to ₹54,000 per candy.

Fibre2Fashion News Desk (KUL)