Yarn trade faces uncertain demand scenario in southern India

However, powerloom owners and stockists are getting handsome profits on older stocks of previous lower cost.

A broker from Mumbai told Fibre2Fashion, “Power looms in Maharashtra are running with only 20-25 per cent capacity as demand is very poor. Powerloom owners are not getting sufficient buying for costlier fabric.” Instead, they were selling fabric from stocks which was produced on cheaper yarn. According to trade sources, such stocks of lower cost are proven beneficial. For example, earlier, fabric which was priced at ₹25-30 per metre 12-18 month back, is now being sold at ₹50-60 per metre due to costlier cotton. But stockists’ cost is lower as it was produced from cheaper cotton yarn.

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 are reluctant for fresh buying as downstream industry is not accepting costlier fabric. According to traders, uncertain demand scenario is discouraging buyers in the entire value chain.

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 up by CNY 75 to CNY 26,675 per ton while September 2022 traded higher by CNY 70 at CNY 27,570 per MT today. ZCE cotton May contract lost CNY 120 to CNY 21,345 per MT whereas September contract traded down by CNY 55 at CNY 21,220 per MT.

ICE cotton futures settled Monday’s session lower after high volatility between positive and negative zones, as sporadic buying deals provided optimism which was washed away by the dollar’s strength. Cotton contract for July was down 0.68 cents to 142.93 cents per lb. December contract traded at US cent 123.63 per pound with loss of 0.11 cent.

In Gujarat, cotton prices strengthened for the second consecutive session on Tuesday due to increased demand from mills, while daily arrivals also improved. A grade cotton was traded at ₹97,000 to ₹98,000 per candy of 356 kg, B grade cotton at ₹96,000 to ₹97,000 per candy and average grade cotton at ₹95,000 to ₹96,000 per candy. V797 variety was quoted at ₹48,000 to ₹52,500 per candy.

Fibre2Fashion News Desk (KUL)