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Cotton yarn prices steady in Tiruppur; rise in Mumbai

Costlier cotton and better demand pushed up cotton yarn prices by ₹2-4 per kg in India’s largest city of Mumbai. However, prices remained steady in knitwear hub of Tiruppur, and also in Ahmedabad. Post analysis of the Union Budget 2022-23 announced today by finance minister Nirmala Sitharaman, cotton yarn market is expected to take a clear direction.

According to Mumbai market sources, cotton yarn prices increased due to pre-budget effect. “Buyers were trying to book fresh deals as they expected price rise after Budget. Better demand also pushed cotton yarn prices. Fabric manufactures were increasing their production to meet out summer demand.”

Meanwhile, the state government of Maharashtra has given permission to open the famous Tamba Kanta cotton yarn market for two days, i.e., Thursdays and Fridays, from next week. The market was closed to contain the spread of COVID-19 infection.

On the other hand, there was little trade in Tiruppur and Ahmedabad-Surat markets as mills and traders were waiting for the Budget. While strong sentiments prevailed in Gujarat market, Tiruppur market remained silent as mills were not willing to sell before Budget. A trader said that there was no rate from spinning mills, so market rates were noted at previous level.

In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded up by ₹10-30 at ₹19450-2010 per 5 kg and ₹1700-1750 per 5 kg respectively. 80 count carded cotton yarn of weft variety was sold at ₹1880-1920 per 4.5 kg with gain up to ₹20. Carded cotton yarn (44/46 count) of warp variety was traded up by ₹30 at ₹1730-1770 per 5 kg.

There was no fresh rate in Tiruppur market as mills did not open sale. However, earlier cotton yarn 30 count combed was traded in Tiruppur at ₹355-360 per kg, 34 count combed at ₹370-375 per kg, and 40 count combed at ₹390-400 per kg, according to Fibre2Fashion’s market analysis tool TexPro. Cotton yarn of 30 count carded was sold at ₹312-317 per kg, 34 count carded at ₹325-330 per kg and 40 count carded at ₹335-340 per kg.

ICE cotton futures posted triple digit gains on Monday, supported by mill fixations and robust demand prospects for the natural fibre, as well as a weaker dollar. Cotton contract for March 2022 closed at 127.57 cents, up 381 points, May 2022 closed at 123.07 cents, up 223 points, December 2022 closed at 100.87 cents, up 114 points. A market analyst said that there is a sizable amount of mill fixation buying that has entered cotton futures and is driving the upward movement. The trend in the market was bullish.

Cotton prices scaled higher in Maharashtra market for third consecutive session on Tuesday amid continued buying by spinning mills, while daily arrivals saw an increase. In Nagpur and Yavatmal line, 30 mm variety of cotton was priced at ₹80,400-81,000 per candy of 356 kg each, 29.5 mm at ₹79,500-80,000 per candy and 29 mm variety at ₹78,800 to 79,200 per candy. In Marathwada, Khandesh line, 29 mm RD 75 variety cotton was priced at ₹77,500 78,500 per candy. In Akola line, the price of 29 mm variety of cotton was ₹78,000-78,300 per candy and 28.5 plus cotton was priced at ₹76,500-77,000 per candy.

Fibre2Fashion News Desk (KUL)

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