Cotton yarn prices may stay range bound till mid-April in south India

In Tiruppur, demand from powerloom owners was very weak because they were not getting enough orders from garment manufacturers. Sri Lankan crisis has also dampened market sentiments. Traders said that Sri Lanka was not a big factor in huge Indian textile sector, but it has psychological impact on the market. According to traders, payments of around ₹200-300 crore are believed to be stuck in Sri Lanka due to the current crisis.

In Tiruppur market, 30 count combed cotton yarn was traded at ₹385-395 per kg (GST extra), 34 count combed at ₹395-410 per kg and 40 count combed at ₹420-430 per kg. Cotton yarn of 30 count carded was sold at ₹360-370 per kg, 34 count carded at ₹365-375 per kg and 40 count carded at ₹380-390 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In Maharashtra’s textile hubs of Ichalkaranji, Malegaon and Bhiwandi, many workers have gone on leave due to Ramadan, resulting in shortage of labour in powerloom factories. So, powerloom owners have reduced their production and have cut buying of cotton yarn. But power looms owners are not much worried for production because demand is also poor. A power loom owner from Ichalkaranji, Bharat Bhai, told Fibre2Fahion that current yarn rates are not sustainable because of weak demand from downstream industry.

In Mumbai market, which caters to textile hubs in Maharashtra, cotton yarn prices slipped by ₹4-5 per kg. 60 count carded cotton yarn of warp and weft varieties were traded down at ₹2,130-2,180 per 5 kg (GST extra) and ₹1,975-2,025 per 5 kg respectively. Carded cotton yarn (44/46 count) of warp variety was traded lower at ₹2,020-2,060 per 5 kg. But 80 count carded cotton yarn of weft variety was sold steady at ₹2,250-2,300 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹375-380 per kg. 40 count combed yarn (warp) was priced at ₹425-440 per kg. 

In the global market, ZCE cotton yarn May 2022 futures traded down by CNY 125 to CNY 28,010 per ton and September 2022 traded lower by CNY 90 at CNY 27,560 per MT today. ZCE cotton May steadied at CNY 20,875 per MT and September contract traded down by CNY 35 to CNY 21,145 per MT. ICE cotton futures closed with mixed session on Thursday, with old crop ending lower and new crop ending higher. Cotton contract for May 2022 closed at 133.2 cents, down 249 points; July 2022 closed at 131.4 cents, down 120 points; and December 2022 closed at 114.69 cents, up 19 points. “The export sales report was bad, which was expected. Also, we saw some cancellations from China,” said an analyst. 

In Gujarat, cotton prices remained stable on Friday amid lower demand from mills at higher prices, while daily arrivals were stagnant. A grade cotton was traded at ₹92,000 to ₹93,000 per candy of 356 kg, B grade cotton at ₹91,000 to ₹92,000 per candy, and the average grade at ₹90,000 to ₹91,000 per candy in the mandis of the state. V797 variety was quoted at ₹47,000 to ₹48,000 per candy.

Fibre2Fashion News Desk (KUL)