Mumbai, Tiruppur witness stable cotton yarn trend amid weak demand

Traders said that Mumbai market noted stable trend in cotton yarn trade. Buyers remained silent for fresh buying. Current yarn rates are not comfortable for buyers because fabrics prices did not increase enough. Powerlooms and weaving industry are facing squeeze on profit margins. Sources said that Maharashtra’s textile hubs like Ichalkaranji, Malegaon, and Bhiwandi are also facing labour shortage as several of them have gone on leave due to the month of Ramadan.

A broker said that cotton yarn prices have increased by 20-25 per cent in last four months, but fabrics prices rose only by 15-20 per cent. The fabric which was earlier priced at ₹75-80 per metre could rise only to ₹90 per metre.

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded flat at ₹2,130-2,180 and ₹1,975-2,025 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 ₹2,250-2,300 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.

Tiruppur market also witnessed stable trend today. The traders said that buyers were buying yarn just for immediate need. Powerlooms and weaving industry are just trying to keep their production continue at partial capacity. However, spinning mills are not reducing yarn prices so that they can protect margins. Traders believed that cotton yarn prices may remain range bound. 30 count combed cotton yarn was traded at ₹385-405 per kg, 34 count combed at ₹405-415 per kg and 40 count combed at ₹425-435 per kg (GST extra). Cotton yarn of 30 count carded was sold at ₹360-370 per kg, 34 count carded at ₹370-375 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 325 to CNY 27,310 per ton and September 2022 traded higher by CNY 40 at CNY 27,715 per MT today. ZCE cotton May gained CNY 115 to CNY 21,015 per MT and September contract traded up by CNY 70 to CNY 21,220 per MT.

ICE cotton futures posted triple digit gain on Monday, with the old crop rising strongly and the new crop setting another contract highs. Cotton contract for May 2022 closed at 135.29 cents, up 288 points; July 2022 closed at 133.45 cents, up 239 points; while December 2022 closed at 117.62 cents, up 214 points. The delivery period for old crop cotton, notably the May contract, is approaching. To avoid the delivery process, traders, funds, and growers are forcibly rolling out of spot May into July of the new crop months.

In Gujarat, cotton prices held steady for the fourth straight session on Tuesday amid limited buying by mills, while daily arrivals were also stable. A grade cotton was sold at ₹91,000 to 92,000 per candy of 356 kg, B grade cotton at ₹90,000 to 91,000 per candy, and the average grade at ₹89,000 to 90,000 per candy. The mills in South India traded at ₹92,000 to 92,500 per candy. V797 variety was quoted at ₹47,000 to 48,000 per candy.

Fibre2Fashion News Desk (KUL)