Cotton yarn prices of major varieties gained further today in Indian textile hubs of Mumbai and Tiruppur. In Mumbai market, the price of cotton yarn increased by Rs. 20-40 per 5 kg, while in Tiruppur, the price rose by Rs. 2-8 per kg. However, traders expect the current upward trend to be short lived as market will get disrupted post GST hike from January 1, 2022.
In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at Rs. 1,820-1,944 and Rs. 1,620-1,680 per 5 kg respectively, while 80 count carded cotton yarn of weft variety was quoted at Rs. 1,850-1,880 per 5 kg, and 46 count carded cotton yarn of weft variety was sold at Rs. 1,600-1,640 per 5 kg. A Mumbai-based broker BN Ladda told that the prices increased by Rs. 20-40 per 5 kg in the last few days. According to him, cotton yarn prices gained due to the proposed GST hike. Better demand also supported the price gain.
Ahmedabad-based broker Ramesh Chhabaria said that fabric manufacturers are overwhelmed with orders. “They have orders for next 2-3 months for fabrics production. They have good orders from apparel manufacturers for both domestic and export orders.”
In Tiruppur market, cotton yarn prices remained bullish as higher cotton prices forced spinners to raise their yarn prices by around Rs. 2-8 per kg. Cotton yarn 30 count combed was traded in Tiruppur at Rs. 330-335, 34 count combed at Rs. 340-345 and 40 count combed at Rs. 360-365 per kg. Cotton yarn of 30 count carded was sold at Rs. 300-305, 34 count carded at Rs. 315-320 and 40 count carded at Rs. 330-335 per kg, according to market analysis tool TexPro. Trade sources said that spinners quoted higher prices due to costlier cotton and the proposed GST hike. There was average demand to support current price rise.
Meanwhile, ICE cotton futures posted a triple digit gain recently, reflecting positive trend in the financial and oil markets, and a robust demand outlook for the natural fibre. Cotton contracts for March 2022 closed at 112.28 cents, up 316 points; May 2022 closed at 109.83 cents, up 278 points; December 2022 closed at 91.94 cents, up 123 points. Domestic markets also witnessed upward price trend in cotton trade due to higher demand from spinning mills. ZCE cotton yarn January 2022 futures traded higher by CNY 245 at CNY 27,065 per ton and May 2022 traded higher by CNY 330 at CNY 27,230 per MT today.
