South Indian spinners cannot pass on rising cotton prices upstream

Despite rising cotton prices, the prices of major varieties of cotton yarn were stable in the Mumbai and Tilpur markets amid sluggish demand from downstream industries. Spinners quoted yarn prices at a higher level, but sluggish demand did not support price increases. Upstream companies are also in a pinch that demand for clothing is waning.
In the Mumbai market, 60 count combed cotton yarns for warp and weft were traded at 1,820 to 1,944 pounds per 5 kg and 1,620 to 1,680 pounds per 5 kg, respectively. The 80-count combed yarn of the warp variety was estimated at 1,850 to 1,880 pounds per 5 kg, and the 46-count combed yarn of the warp and weft variety was sold at 1,600 to 1,640 pounds per 5 kg. “Prices did not change due to sluggish demand. Mumbai-based brokers quoted spinners for higher prices as cotton prices rose in the last two weeks, but demand from fabrics was low. Therefore, the price could not be raised.

Rameshcha Barrier, a veteran businessman based in Armadabad, explained the stress of the entire value chain caused by rising cotton prices. “Buyers of finished fabrics are willing to pay higher prices despite rising prices for gray fabrics. 40/40/132/72/63” Poplin prices are only two weeks From 92 pounds per meter to 106 pounds per meter. The first two weeks of January will continue to be sluggish and demand is expected to increase after Macar. Sankranthi / Pongal (January 14th) When summer clothing production begins. “

Despite rising cotton prices, the prices of major varieties of cotton yarn were stable in the Mumbai and Tilpur markets amid sluggish demand from downstream industries. Spinners quoted yarn prices at a higher level, but sluggish demand did not support price increases. Upstream companies are also in a pinch that demand for clothing is waning.

In the tilpuru market as well, cotton yarn prices remained firm due to sluggish demand. 30 counts of cotton yarn were traded at Tilpur at 330-335 pounds per kg, 34 counts at 340-345 pounds per kg and 40 counts at 360-365 pounds per kg. According to the report, 30-count cotton cards were sold at 292-295 pounds per kg, 34-count cotton cards were sold at 300-310 pounds per kg, and 40-count cotton cards were sold at 330-335 pounds per kg. 

In the cotton trade, prices in the domestic market were on the rise due to increased demand from spinning mills. Prices have risen by £ 200-500 per 356 kg candy in various markets.

Meanwhile, ZCE cotton yarn January 2022 futures traded at RMB 26,960 per ton for RMB 5 and May 2022 today traded at RMB 27,505 per ton for RMB 225. ICE cotton futures rose on Thursday following a strong demand outlook. The March 2022 cotton contract rose 135 points to close at 114.34 cents. In May 2022, it closed at 111.44 cents, up 107 points. In December 2022, it closed at 92.29 cents, up 64 points.