Cotton Yarn Prices May Remain Stable in South India till mid-April

Cotton yarn prices fell by 4-5 per kg in the Mumbai market today, while yarn prices in Tiruppur, southern India's hosiery hub, remained stable despite weak demand, as fabric prices did not rise in proportion to yarn prices. According to traders, demand is unlikely to pick up anytime soon, and prices may remain in a narrow range until at least mid-April.

In Tiruppur, demand from power loom owners was very low due to a lack of orders from garment manufacturers. The Sri Lankan crisis has also weighed on market sentiment. According to traders, Sri Lanka is not a major player in the vast Indian textile industry, but it has a psychological impact on the market. Payments worth around 200-300 crore is believed to be stuck in Sri Lanka as a result of the current crisis, according to traders.

30 count combed cotton yarn was traded at 385-395 per kg (GST extra) in the Tiruppur market, 34 counts combed at 395-410 per kg, and 40 counts combed at 420-430 per kg. According to Fibre2Fashion's market insight tool TexPro, cotton yarn of 30 counts carded sold for 360-370 per kg, 34 counts carded for 365-375 per kg, and 40 counts carded for 380-390 per kg.

Many workers in Maharashtra's textile hubs of Ichalkaranji, Malegaon, and Bhiwandi have gone on leave for Ramadan, resulting in a labour shortage in power loom factories. As a result, power loom owners have reduced their output and reduced their purchases of cotton yarn. However, power loom owners are unconcerned about production because demand is also low. Bharat Bhai, a power loom owner from Ichalkaranji, informed that current yarn rates are unsustainable due to low downstream demand.

Cotton yarn prices fell by 4-5 per kg in the Mumbai market, which serves Maharashtra's textile hubs. 60 count carded cotton yarn in warp and weft varieties was traded down at 2,130-2,180 per 5 kg (GST extra) and 1,975-2,025 per 5 kg (GST extra), respectively. Carded cotton yarn (44/46 count) of warp variety was traded at a lower price per 5 kg, at $2,020-2,060.

On Thursday, ICE cotton futures ended with a mixed session, with old crops ending lower and new crops ending higher. The cotton contract for May 2022 closed at 133.2 cents, down 249 points; the cotton contract for July 2022 closed at 131.4 cents, down 120 points; and the cotton contract for December 2022 closed at 114.69 cents, up 19 points. "The export sales report was disappointing, as expected. "We also saw some cancellations from China," an analyst said.

Cotton prices in Gujarat remained stable on Friday, owing to lower demand from mills at higher prices, while daily arrivals remained unchanged. In the state's mandis, A-grade cotton was traded at 92,000 to 93,000 per candy of 356 kg, B-grade cotton at 91,000 to 92,000 per candy, and the average grade at 90,000 to 91,000 per candy. The V797 variety was estimated to cost between $47,000 and $48,000 per candy.