A broker from Mumbai, BN Ladda told Fibre2Fashion, “Cotton yarn prices recorded increase of 4-5 per cent in southern market in last week, but fabric prices cannot be increased so high. It will take 2-3 months for appreciation of 4-5 per cent in fabric if the market sentiments remain positive.”

Cotton yarn prices remained stable in Mumbai market today. Mumbai and nearby textiles hubs are dependent on south India for cotton yarn supply. Steep price rise discouraged buyers. It is important to mention that Tamil Nadu and other south India based spinning mills had increased cotton yarn prices by up to ₹40 per kg. However, yarn markets had recorded price rise of ₹15-20 per kg which disrupted the entire value chain. Tiruppur based weaving and garment industry is planning for many days strike in third week of current month.

In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹2,100-2,150 and ₹1,900-2,050 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,970-2,000 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 remained stable in Tiruppur market also. Buyers adopted wait and watch approach as steep price rise in yarn cannot be passed on to the downstream industry. However, traders are expecting that after silence in this week, demand will improve in next week.

In Tiruppur market, 30 count combed cotton yarn was traded at ₹430-440 per kg (GST extra), 34 count combed at ₹440-445 per kg and 40 count combed at ₹470-470 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 ₹415-425 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In the global market, ZCE cotton yarn May 2022 futures traded down by CNY 795 to CNY 26,710 per ton and September 2022 traded lower by CNY 175 to CNY 27,740 per MT today. ZCE cotton May contract lost CNY 175 to CNY 21,700 per MT and September contract traded down by CNY 440 at CNY 21,490 per MT. ICE cotton futures ended sharply lower on Thursday after scaling the highest level in over a decade in the last session, pressured by a stronger dollar and traders opting for profit booking. Cotton contracts for July were down 6 cents to 148.76 cents per lb. December contract traded at 126.33 cents per pound with loss of 3.34 cent.

In Gujarat, cotton prices dropped on Friday due to subdued demand and downfall in ICE cotton. The daily arrivals of cotton remained suspended. 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 ₹94,000 per candy. V797 variety was quoted at ₹48,000 to ₹51,000 per candy.

Fibre2Fashion News Desk (KUL)