July 02, 2022 Downward trend continued in south Indian cotton yarn prices. Tiruppur based SSM group reduced yarn prices by ₹40 per kg for all varieties and counts which shows pressure on spinning mills. Traders said that most of the mills will feel selling pressure due to the development. Cotton yarn prices fell by ₹2-5 per kg in Mumbai and Tiruppur markets. Cotton yarn prices continued to feel pressure due to poor demand and stockists’ selling in Mumbai market. The prices fell ₹3-4 per kg as buyers remained absent. Ichalkaranji (Maharashtra) based businessman Bharat bhai Shah told Fibre2Fashion, “Yarn prices will further decline as steep price cut by the mill will put pressure on other mills and stockists. However, market will not see equal fall because mills have already reduced yarn prices officially or unofficially. Many mills are giving additional discounts so the rates of most of the mills have already reduced drastically. Yarn prices are likely to reduce by around ₹10-15 per kg.” Decline in cotton prices also encouraged mills and stockists to reduce yarn prices.
In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,890-1,940 and ₹1,675-1,725 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,7750-1,780 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹1,730-1,760 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹328-345 per kg. 40 count combed yarn (warp) was priced at ₹385-390 per kg, according to Fibre2Fashion’s market insight tool TexPro.
Cotton yarn prices also eased in Tiruppur market as demand remained weak and selling was pressurising market sentiments. Continued downtrend in cotton price created panic in the market. Traders and stockists are trying to make profits by selling yarn. A trader from Tiruppur market told Fibre2Fashion, “Demand remained very weak. While sellers are trying to clear their stock before heavy fall.” On price cut of ₹40 per kg by a Tiruppur based mill, the trader said that the markets were still under pressure. Market prices of yarn are already falling due to selling pressure.
In Tiruppur market, cotton yarn prices witnessed further downfall of ₹2-3 per kg in the absence of buyers. 30 count combed cotton yarn was traded at ₹388-393 per kg (GST extra), 34 count combed at ₹403-408 per kg and 40 count combed at ₹412-417 per kg. Cotton yarn of 30 count carded was sold at ₹345-345 per kg, 34 count carded at ₹350-353 per kg and 40 count carded at ₹354-356 per kg, as per TexPro.
In Gujarat, cotton prices also remained under pressure as stockists were keen to clear their stocks. According to trade sources, stockists and MNCs are selling their stock because there were expectations of further fall in the market. Spinning mills were reluctant for fresh buying as buyers are in wait and watch mode for yarn. Shankar-6 cotton Spot prices came down to ₹87,000-91,000 per candy.