In spite of exempting cotton from import duty, its price is going up because import is still elusive due to price disparity. ICE cotton is continuously registering price rise because of dry season worry in the US. India’s future buying is also pushing up cotton prices.

Traders said that spinning mills are not able to reduce yarn prices because of costlier natural fibre. They are already feeling pressure on margins. But removal of duty discouraged buyers. They have stopped buying of cotton yarn as they adopted wait and watch policy.

A broker from Mumbai said that he could not get single order for yarn supply. It shows the condition of yarn market in Mumbai and Maharashtra at large. However, the broker said that fabric prices came down by ₹1-2 per metre after increase of ₹5-7 per metre in first half of April. Manufacturers and stockists are clearing stocks of fabric through fulfilling present yarn buying. Fabric prices are likely to see recovery after one fortnight when some stocks are sold out. If fabric prices improve, it will give positive sign to yarn market.

Sources said that Maharashtra’s powerlooms are running with partial capacity due to various reasons. Lower demand from garment industry, labour shortage and lower margins are discouraging fabric production. Therefore, weaker yarn demand dragged down prices by around ₹2-4 per kg. Some varieties recorded down fall of up to ₹10-15 per kg. Last week, yarn prices witnessed decline of ₹2-5 per kg.

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹2,110-2,160 and ₹1,960-2,020 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,950-2,010 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹2,090-2,120 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹385-390 per kg. 40 count combed yarn (warp) was priced at ₹420-437 per kg.

Tiruppur market also faced poor demand amid dual pressure on the market. Most varieties of yarn were traded steady except few which witnessed down fall of ₹2-3 per kg. Purushottam Gupta, a prominent trader from Tiruppur market, said that it was unique condition of higher cotton prices and bearish conditions in downstream industry. 30 count combed cotton yarn was traded at ₹390-402 per kg (GST extra), 34 count combed at ₹390-395 per kg and 40 count combed at ₹407-412 per kg. Cotton yarn of 30 count carded was sold at ₹360-365 per kg, 34 count carded at ₹350-355 per kg and 40 count carded at ₹380-392 per kg, according to Fibre2Fashion’s market insight tool TexPro.

In the global market, ZCE cotton yarn May 2022 futures traded up by CNY 100 to CNY 27,785 per ton and September 2022 traded lower by CNY 15 at CNY 28,165 per MT today. ZCE cotton May contract steadied at CNY 21,575 per MT and September contract traded up by CNY 25 at CNY 21,555 per MT. ICE cotton futures posted triple digit gains on Monday, as weather concerns and the prospect of larger Indian imports prompted follow-through buying in the cotton market.

ICE Cotton contract for May 2022 closed at 144.74 cents, up 276 points; July 2022 closed at 143.25 cents, up 254 points; and December 2022 closed at 123.47 cents, up 99 points.

In Gujarat, cotton prices held steady on Tuesday amid limited demand from mills at higher prices, while daily arrivals also remained stable. A grade cotton was priced at ₹93,000 to 94,000 per candy of 356 kg, B grade at ₹92,000 to 93,000 per candy and average grade cotton at ₹91,000 to 92,000 per candy. V797 variety was quoted at ₹48,000 to 50,000 per candy.

Fibre2Fashion News Desk (KUL)

Apparel/Garments | On 11th May 2022

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