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Sunday, May 26, 2024

Cotton yarn stays bearish in south India despite better export orders

Better export orders from China and other economies failed to lift the cotton yarn rates in South India which remained below the global benchmark. In fact, despite good news, the cotton yarn rates declined by INR 5-10 in Mumbai. Tiruppur and other South Indian cotton markets

Cotton traders termed low cotton arrival and low demand from downstream industries as the major challenges for the sector. The bearish trend was sharper in Mumbai where cotton yarn prices in one week declined by INR10 per kg. Traders in Mumbai said slower demand in the domestic industry has created bearish trends in yarn trade. The market they added did not respond positively to reports of higher export orders. The 60-count carded cotton yarn of warp and weft varieties in the Mumbai market were traded at INR1,590-1,630 and INR1,480-1,530 per 5 kg (GST extra) respectively. The bearish trend was witnessed on all counts. The 80-carded (weft) cotton yarn was sold at INR1450-1470 per 4.5 kg. The 60-combed warp was priced at INR345-350 per kg. The 44/46 count carded cotton yarn (warp) was priced at INR285-290 per kg. The 40/41 count combed yarn (warp) was priced at INR290-295 per kg and the 40/41 count carded cotton yarn (warp) was sold at INR272-278 per k

In the Tiruppur market, the cotton yarn also remained weak. Poor demand again was blamed for pulling down yarn prices by INR5-10 per kg. Cotton yarn export orders that remain dry for some time came spinners’ way at lower prices. They were able to execute those orders due to a reccent fall in cotton prices but they just managed to export them at cost without incurring any losses. Market analysts said exporting the yarn at cost price did not indicate better demand for the commodity. The sippers exported yarn at low prices but without loss to liquidate the huge stocks they were sitting on. The 30-count combed cotton yarn was traded in the Tiruppur market at INR285-290 per kg (without GST), 34-count combed at INR300-305 per kg and 40-count combed at INR310-315 per kg in the Tiruppur market.

The news from the cotton market was also not good for spinners. In Gujarat, cotton was traded at INR 61,000 to INR 61,500 per candy of 356 kg. The prices appreciated by INR1,000-1,200 per candy after easing last week. According to traders, cotton prices rose by around 2 percent, while seed cotton (Narma or Kapas) jumped 4 percent. Therefore, parity at ginning and spinning levels again vanished after the rise in the price of Kapas.

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