Cotton yarn prices of major varieties increased by Rs. 20-25 per 5 kg recently in Mumbai as demand improved from cloth manufacturers in last couple of days. However, Tiruppur market saw steady trend due to average demand. Since the North Indian market had seen price rise in last few days, traders expect the Southern market also to take same path in coming week.
In the Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at Rs. 1,820-1,944 and Rs. 1,580-1,660 per 5 kg respectively. 80 count carded cotton yarn of weft variety was quoted at Rs. 1,820-1,866 per 5 kg. 46 count carded cotton yarn of weft variety was sold at Rs. 1,590-1,630 per 5 kg. According to a Mumbai-based broker fabric manufacturers were buying yarn for next summer season. “The market took cues from firm trend of Northern markets which had seen better demand.”
In the Tiruppur market, cotton yarn prices remained stable as average demand helped market sentiments to maintain status quo. Cotton yarn 30 count combed was traded in Tiruppur at Rs. 325-330 per kg, 34 count combed at Rs. 335-340 per kg, and 40 count combed at Rs. 355-360 per kg. Cotton yarn of 30 count carded was sold at Rs. 295-305 per kg, 34 count carded at Rs. 310-320 per kg, and 40 count carded at Rs. 325-335 per kg, according to market analysis tool TexPro.
Trading sources from Tiruppur market said that demand was not so encouraging to support prices. Steady trend persisted on average demand. However, traders expected price rise in next few days as the market will take cues from North India’s upward trend.
Meanwhile, the GST hike proposal continues to remain a sticky issue for the entire textile sector. As a result, traders are taking a cautious approach. A trader from Ahmedabad told that cloth manufacturers have reduced production due to this uncertainty, but manufacturing and business activities cannot be halted for the same reason. “Few manufacturers are looking for business opportunity in the current uncertain conditions. They expect that fabrics and clothing will see upward trend in January, and hence they can benefit from the same.”
In the global market, ZCE cotton yarn January 2022 futures traded higher by CNY 30 at CNY 26,965 per tonnes and May 2022 traded higher by CNY 190 at CNY 26950 per MT today. Cotton contracts for March 2022 closed at 109.12 cents, up 29 points; May 2022 closed at 107.05 cents, up 25 points; December 2022 closed at 90.71 cents, up 72 points. Domestic markets also witnessed upward price trend in cotton trade due to higher demand.
