Cotton yarn prices decline in south India as buyers absent

According to trade sources, buyer in the entire value chain reduced their buying to adopt wait and watch policy. They preferred to postpone buying as they were waiting for decline in yarn prices after the government allowed duty-free import of cotton.

Traders said that buyers have stopped buying of cotton yarn so they can wait and watch market movement. Some buyers expect cotton yarn prices to come down because psychological pressure was expected on prices of the natural fibre.

A Broker from Mumbai, BN Ladda, told Fibre2Fashion that cotton yarn prices came down because demand discouraged higher prices. “Current yarn rates are not comfortable for buyers. The prices had seen steep rise which is not attractive in the market. The entire value chain has become cautious. So, buyers of yarn, grey fabrics, finished fabric and garment are preferring to wait for now.”

Sources said that Maharashtra’s textile hubs like Ichalkaranji, Malegaon, and Bhiwandi are also facing labour shortage as workers have gone on leave in the month of Ramadan. A broker said that fabrics and cotton yarn prices fell due to absence of buyers. Most varieties of yarn were sold with downfall of ₹2-5 per kg, but 80 count carded weft yarn noted sharp decline of up to ₹100 per 4.5 kg. 60 count carded cotton yarn of warp and weft varieties were traded at ₹2,120-2,170 and ₹1,965-2,020 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹2,020-2,060 per 5 kg. 80 count carded cotton yarn of weft variety was sold steady at ₹2,180-2,200 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹365-375 per kg. 40 count combed yarn (warp) was priced at ₹420-435 per kg.

Tiruppur market, however, witnessed stable trend amid weak demand. The traders said that buyers were cautious for fresh deals, but the demand is likely to improve in the next fortnight. 30 count combed cotton yarn was traded at ₹390-405 per kg (GST extra), 34 count combed at ₹405-415 per kg and 40 count combed at ₹420-435 per kg. Cotton yarn of 30 count carded was sold at ₹360-370 per kg, 34 count carded at ₹365-380 per kg and 40 count carded at ₹380-390 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In the global market, ZCE cotton yarn May 2022 futures traded down by CNY 175 to CNY 27,365 per ton and September 2022 traded lower by CNY 5 at CNY 28,150 per MT today. ZCE cotton May gained CNY 110 to CNY 21,360 per MT and September contract traded flat at CNY 21,350 per MT.

ICE cotton found support from prospects of higher buying from India after removal of import duty.

In Gujarat, cotton prices remained bullish due to indications received from global market. The prices increased by around ₹1,000-1,500 per candy of 356 kg since Monday. However, cotton prices are likely to witness phycological pressure from the latest government’s policy change. A grade cotton was sold at ₹92,000 to 93,500, B grade cotton at ₹91,500 to 92,500 and the average grade at ₹90,500 to 91,500 per candy. V797 variety was quoted at ₹46,000 to 48,000 per candy.

Fibre2Fashion News Desk (KUL)