Foreign news on April 1, the recent increase in cotton yarn prices has made cotton yarn buyers in southern India become cautious, resulting in reduced demand. In addition to the sharp rise in prices, business activities have also slowed down as traders scramble to reconcile their accounts as the fiscal year ends on March 31. While spot trading prices in Mumbai were stable, prices in Tirupur were mixed.
Trade sources from Mumbai said that the spot price of cotton yarn is stable and buyers are cautious about new purchases. Buyers are expected to be interested again when they see significant improvements in gray fabrics and finished fabrics.
A broker said that demand was better before March 25, which supported the increase in cotton yarn prices, but textile companies and handloom weavers almost closed in the last week of March. Purchases were stopped because high prices dampened their interest in buying.
Traders expect demand for summer clothing to increase next week, which is expected to boost sentiment in the textile and cotton yarn markets.
In the Mumbai market, most cotton yarn prices remained stable due to limited procurement.
In Tirupur, the hub of knitwear, prices of cotton yarn varied. The prices of a few types of yarns increased slightly, but the prices of other types of yarns remained stable. Traders said demand from textile companies and handloom weavers was very limited. But as cotton costs rise, cotton mills are raising prices.
From a global perspective, the closing price of Zheng Cotton’s main contract was 21,740 yuan/ton, with a daily decline of 0.07%.
ICE’s main cotton futures contract fell 1.14 cents on Friday, settling at 134.55 cents/pound.
In Kupang, India, cotton prices softened on Friday on weak demand from cotton mills, but daily arrivals remained stable. The bearish momentum of ICE cotton futures also puts pressure on Indian market sentiment.
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