Cotton yarn prices shoot up in south India's knitwear hub of Tiruppur

According to some north India based traders, Tamil Nadu based SSM group has increased yarn prices by ₹40 per kg (over 10 per cent). According to market sources, demand was very limited because buyers find current rates unviable for downstream industry. Mills know this fact, but they adopted unusual step to increase yarn prices by over 10 per cent in just few days or in single day.

A trader from Tiruppur, Purushottam Gupta told Fibre2Fashion that mills want to indicate that lower arrival and higher cotton prices may continue to push yarn prices upwards. He said that the market rates may stand with a hike of ₹15-35 per kg because of lower demand. Mills are offering heavy discount on increased card rates to adjust market prices. 30 count combed cotton yarn was traded at ₹430-440 per kg (GST extra), 34 count combed at ₹445-455 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 ₹405-415 per kg and 40 count carded at ₹410-420 per kg, as per Fibre2Fashion’s market insight tool TexPro.

ICE cotton futures rallied near 3 per cent on Monday, boosted by supply concerns due to worsening drought across key growing regions in the US and mill buying. Cotton contracts for July rose 7 cents to 147.68 cents per lb. December contract traded at 125 cents per pound.

Meanwhile, cotton prices moved higher in the mandis of Gujarat on mills’ buying while arrival decreased. A grade cotton was traded at ₹95,000 to ₹95,500 per candy of 356 kg, B grade cotton at ₹94,000 to ₹95,000 per candy and average grade cotton at ₹93,000 to ₹95,000 per candy. V797 variety was quoted at ₹48,000 to ₹50,500 per candy.

Fibre2Fashion News Desk (KUL)