South India’s cotton yarn bearish, fabric may get support in Mumbai

Cotton yarn prices in South India remained stable today as the demand from downstream industries continued to be weak. However, mills and traders were not willing to reduce the prices and preferred to hold onto the stock until mid-April. Cotton yarn was traded at previous levels in Mumbai and Tiruppur markets. Despite the bearish sentiment in the cotton yarn market, Mumbai’s fabric market was expected to receive some support due to a reduction in power loom production. 

Cotton yarn prices in Mumbai were steady. “The cotton market may not find support for now because power loom owners can reduce their purchase of raw materials. However, fabric production may decline, giving support to the market. Muslim workers dominate Maharashtra’s textile hubs, and they may go on leaves during Ramadan,” Jai Kishan, a trader from Mumbai told Fibre2Fashion. 

Cotton yarn prices in South India were stable due to weak demand from downstream industries. Traders and mills preferred to hold onto their stock until mid-April rather than reducing prices. Mumbai’s fabric market was expected to receive some support due to a reduction in power loom production. Market sentiments in Tiruppur were also weak.

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,525-1,540 and ₹1,400-1,450 per 5 kg (GST extra) respectively. The 60 combed warp was priced at ₹342-345 per kg, 80 carded (weft) cotton yarn was sold at ₹1,440-1,480 per 4.5 kg, 44/46 count carded cotton yarn (warp) was priced at ₹280-285 per kg, 40/41 count carded cotton yarn (warp) was sold at ₹260-268 per kg and 40/41 count combed yarn (warp) was priced at ₹290-303 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

In Tiruppur, market sentiments were weak as demand did not improve from weaving, processing, and garment industries. However, spinners preferred to wait for an improvement in prices and were expected to wait until mid-April, trade sources said. Demand was expected to gear up in the next month. In this market, 30 count combed cotton yarn was traded at ₹280-285 per kg (GST extra), 34 count combed at ₹292-297 per kg and 40 count combed at ₹308-312 per kg. 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 was priced at ₹60,500-61,000 per candy of 356 kg, and although cotton prices were stable, sentiments were bearish. Spinners were only buying cotton for their regular needs as they believed the supply would be stable for a long period due to farmers’ large stocks. 

Recent rains and cloudy weather disrupted daily cotton arrivals, which dropped to around 77,000 bales of 170 kg each in the entire country. Gujarat’s arrival was estimated to be around 25,000 bales. 

Fibre2Fashion News Desk (KUL)