Seasonal shift may help boost the prices of cotton yarn in south India as production of summer clothing is likely to pick up in a few weeks. The industry is trying to adjust the production at present prices. Cotton yarn prices already gained in Mumbai today as demand improved from the downstream industry. Buying increased in Tiruppur market too.
Cotton yarn prices were up by ₹3-4 per kg in Mumbai as demand rose. “Demand improved because the production of summer clothing is set to pick up in the next 2-3 weeks. The industry is trying to adjust present cotton yarn prices,” Mumbai-based trader Jai Kishan told Fibre2Fashion. The consumer industry and traders are buying cotton yarn, and sentiments also improved in fabrics trade.
In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,540-1,570 and ₹1,440-1,490 per 5 kg (GST extra) respectively. 60 combed warp was priced at ₹345-350 per kg, 80 carded (weft) cotton yarn was sold at ₹1,470-1,490 per 4.5 kg, 44/46 count carded cotton yarn (warp) was priced at ₹285-290 per kg, 40/41 count carded cotton yarn (warp) was sold at ₹272-278 per kg and 40/41 count combed yarn (warp) was priced at ₹292-295 per kg, according to Fibre2Fashion’s market insight tool TexPro.
Market sentiments improved in Tiruppur despite the festival of Pongal during which production and trade are limited. Traders said that weaving industry is buying yarn as they need to plan for the summer season and cotton yarn prices are likely to pick up after the festival.
Today, 30 count combed cotton yarn was traded at ₹285-290 per kg (GST extra), 34 count combed at ₹300-305 per kg and 40 count combed at ₹310-315 per kg in the Tiruppur market. Cotton yarn of 30 count carded was sold at ₹255-260 per kg, 34 count carded at ₹265-270 per kg and 40 count carded at ₹270-275 per kg, as per TexPro.
In Gujarat, cotton prices went down by ₹500 to ₹62,500-63,000 per candy of 356 kg. Ginners are still facing a disparity of ₹3,000-4,000 per candy. Weaker demand from spinning mills and MNCs caused the decline in cotton prices. According to the traders, farmers are still reluctant to sell seed cotton (narma) which was traded at ₹1,750-1,800 per 20 kg. However, optimism in yarn trade could be positive for the market.