Dip in demand sends yarn prices down by ₹30 a kilo

Category: YARNS

Country: India

Poor demand from garment units has triggered a drop of Rs 30 per kilogram in price of cotton yarn across all categories.

Published: 02nd August 2022 05:59 AM  |   Last Updated: 02nd August 2022 05:59 AM By Saravanan MP | Express News Service

TIRUPPUR: Poor demand from garment units has triggered a drop of Rs 30 per kilogram in price of cotton yarn across all categories. According to sources, combed and semi-combed yarn in the categories-20s count, 24s count,30s count, 40s count are mostly used in the garment industry in Tiruppur.

Due to fall in demand, prices dropped Rs 40 per kilogram on  July 1, 2022, and continued to drop to Rs 30 on August 1. As a result, all varieties of yarn which was hovering above Rs 470-490 per kilogram has come to around Rs 390-410 per kilogram. President of Tiruppur Exporters and Manufacturer Association MP Muthurathinam said, “As expected, the price has come down and there are many reasons, the most important one being reduction in offtake by garment units since May.

This affected offtake of yarn from mills in Tiruppur, Coimbatore and Erode and many mills were forced to shed stock at throwaway prices. In order to attract garment units, they reduced price across the board. But one must remember this is a business cycle, whatever goes up must come down.

Explaining the dip in demand for yarn, K Nagarajan, proprietor of Bhagwan Hosiery, said, “In March and April, mills increased price by up to Rs 30 and Rs 40 per kilogram respectively. Distributors from North India, Andhra Pradesh, Telangana placed orders in Tiruppur, cautiously. When the price fell in July, they reduced orders, expecting prices to fall further. So, garment units had to procure less yarn from mills.”

South India Spinners Association president P Jagadesan said, “There are some reasons why mills were forced to reduce prices. Large mills couldn’t hold stocks for a longer period of time. So in order to avoid excess accumulation, they are offloading stocks. This is having a cascading effect.”

Courtesy: https://www.newindianexpress.com/states/tamil-nadu/2022/aug/02/dip-in-demand-sends-yarn-prices-down-by-%E2%82%B930-a-kilo-2483080.html