Foreign news on May 23, cotton yarn prices in southern India fell further. Major markets like Tirupur and Mumbai experienced a sharp drop in demand.
This situation has raised concerns about huge losses in spinning mills. In addition, cotton trade has also been affected by weak demand. Kupang cotton prices also fell. Although traders expect garment export orders next month, the market remains nervous as these orders may only provide support in the last week of June and July. The trading sector will therefore continue to be affected by weak demand until then.
Tiruppur cotton yarn prices continue to fall by Rs 2-5 per kg, with textile mills and traders offering steep discounts. Slowing demand in the textile industry has forced textile mills to lure buyers by offering higher discounts.
A trader in Tirupur said: “Textile mills have lost 20-25 rupees per kilogram in cotton yarn production because cotton was purchased at higher prices. Recent cotton prices The decline may not alleviate the situation of textile mills.”
In the Tirupur market, the price of 30-count combed cotton yarn is 266-272 rupees per kilogram (excluding consumption tax). The transaction price of 34-count combed cotton yarn was 277-283 rupees per kilogram, and the 40-count combed cotton yarn was 287-294 rupees per kilogram. The price of 30-count carded cotton yarn is quoted at 242-246 rupees per kilogram; 34-count carded cotton yarn is 249-254 rupees per kilogram, and 40-count carded cotton yarn is 253-260 rupees per kilogram.
Cotton yarn prices in Mumbai also fell due to weak demand. Traders are worried about the continued decline in textile industry purchases.
A trader in Mumbai said: “The current market situation is very worrying for the entire value chain. Garment factories are taking orders from retailers and brands. , are restraining from buying fabrics.”
In the Mumbai market, the price of 60-count carded cotton yarn with warp and weft threads remained stable at 1,475-1,510 rupees and 1,335-1,375 rupees per 5 kg.
Due to poor demand from spinning mills, Kupang cotton prices have been in a bearish state. Cotton prices have fallen by Rs 1,500-2,000 per kandi (356 kg) since last week.
Cotton yarn prices may fall further as spinning mills become more cautious due to limited purchases by the textile industry, trade sources said. Huge losses and liquidity crunch also hit cotton trading market sentiment. The transaction price of cotton is 57,000-58,000 rupees per kandi.
The arrival volume of Kupang cotton is expected to be 24,000-26,000 bales (1 bale = 170 kg), and the arrival volume across India is expected to be 90,000-95,000 bales.
