New Delhi, June 22 (Commoditiescontrol) The sluggish demand for cloths in the domestic markets and overseas as well has impacted the complete chain of the textile industry. The textile mills have lowered their demand for yarn which led a steep fall in its prices. As per the industry sources, yarn prices have declined nearly20-30 per kg so far this month.
“ The textile industry is witnessing slow movement as they are not receiving order of cloth at current rates, that’s why mills are running with less capacity,” Dr Selvarju, Secretary General, South India Mills Association, said on Thursday.
Over 30% of the textile mills have closed their operation in north India while south India around 15-20% mills have closed their operation, he added.
The sluggish activities in the textile mills have impacted the demand for cotton and cotton yarn as well.
Yarn prices have dropped Rs 20-30 per kg since June 1, Selaraju said.
The yarn prices are falling due to its sluggish demand as the textile mills are now shifting from cotton yarn to synthetic yarn, and several small mills have either shut down their operations or on the verge of closure.
The spinners are suffering from double whammy of higher prices of cotton and sluggish demand for yarn. Their margin has fallen significantly as they have bought cotton at higher rates but are selling yarn at reduced rates. The domestic spinners are also suffering losses due to imports of yarn at cheaper rates.
Cotton yarn prices declined by ₹2-5 per kg in south Indian markets today due to weaker demand, a market analyst said. There is a sense of uncertainty in the entire value chain of the textile sector, and weaving, finishing and printing activities have slowed down. Producers and processors are not able to pass on the price rise and have distanced themselves from the market.
According to a trade source, demand remained weak this week. “Yarn buyers are reluctant for fresh buying as they are uncertain about demand from the weaving industry. Cotton yarn prices eased down by ₹2-3 per kg.” In Mumbai market, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,950-2,000 and ₹1,870-1,920 per 5 kg (GST extra) respectively. Carded cotton yarn (44/46 count) of warp variety was traded at ₹1,840-1,870 per 5 kg. 80 count carded cotton yarn of weft variety was sold at ₹1,900-1,940 per 4.5 kg. 40 count carded cotton yarn (warp) was sold at ₹352-360 per kg. 40 count combed yarn (warp) was priced at ₹407-422 per kg.
In Gujarat, cotton prices witnessed bearish trend in prices. Traders said that spinning mills are not interested in fresh buying and cotton prices dropped Rs 500 to Rs 98500-99000 per candy previous day.
India is the second-largest producer of cotton after China with 25 per cent share of overall production. In the past few months, the global demand has shifted away from China due to the ban on cotton cultivated in the Xinjiang region. With the change in global supply-chain patterns, capacities of Indian yarn spinners have multiplied due to an upswing for this much-sought-after commodity, thereby inflating prices.
Presently, demand for cloths in the domestic market and overseas is weak but market analysts are of views that India market is likely to receive new orders for Christmas demand in coming days which will bolster textile industry.
(By Commodities control Bureau; +91 9820130172)
0 Comments 
Post Comment 
