After the removal of import duty on cotton, buyers reduced their purchase of cotton yarn and are waiting for the prices to fall. Traders feel that buyers are likely to come back in the market once the prices are low. Bearish trend in cotton also caused for pressure on yarn prices.

Traders said that fabric manufacturers are yet to show much interest for fresh buying. They are buying yarn just for their immediate need. Shrinking market pipeline is causing for poor demand.

A broker from Mumbai said that there was very poor demand, so millers and traders were forced to reduce prices. Downfall in cotton prices is also leading to a bearish trend in yarn market. Spinning mills are now ready to pass on benefits to buyers as cotton prices have reduced slightly in the last couple of days. But traders said that buyers’ interest has yet not improved in market. Most varieties of yarn fell down by ₹2-3 per kg in Mumbai market. But 40 count warp combed and carded yarn reduced up to ₹15 per kg. It is learnt that the yarn variety used for womenswear has seen drastic fall due to large stocks.

In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹2,100-2,150 per 5 kg and ₹1,900-2,010 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,940-2,000 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹2,080-2,110 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹355-360 per kg. 40 count combed yarn (warp) was priced at ₹405-425 per kg.

Tiruppur market also witnessed fall in prices of few varieties of yarn due to poor demand. The price of 40 count yarn declined up to ₹5 per kg. According to traders, spinning mills have already reduced production of coarse yarn (lower count yarn), and are focusing on thinner yarn of higher count to reduce cotton consumption. Higher production of thinner yarn gave signal to the market amid enough stocks and poor demand.

In Tiruppur, 30 count combed cotton yarn was traded at ₹395-405 per kg, 34 count combed at ₹395-410 per kg and 40 count combed at ₹420-430 per kg (GST extra). 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 the global market, ZCE cotton yarn May 2022 futures traded up by CNY 70 to CNY 27,415 per ton and September 2022 traded higher by CNY 50 at CNY 28,160 per MT today. ZCE cotton May contract steadied at CNY 21,665 per MT and September contract traded up by CNY 45 at CNY 21,475 per MT. ICE Cotton futures ended lower on Thursday, hurt by poor weekly US export sales, and a stronger US dollar. May cotton settled at 138.59 cents, down 1.80 cents; July closed at 137.89 cents, down 0.99 cent; and December finished at 120.18 cents, 0.84 cent lower per pound.

In Gujarat, cotton prices softened for the third consecutive day on Friday due to weak demand from mills, while daily arrivals remained steady. A grade cotton was priced at ₹93,000 to 94,000 per candy of 356 kg. B grade cotton was priced at ₹92,000 to 93,000 per candy and average grade at ₹91,000 to 92,000 per candy. V797 variety was quoted at ₹48,500 to 49,000 per candy.

Fibre2Fashion News Desk (KUL)