With prices of extra long staple cotton declining, fine cotton yarn prices that witnessed a nearly 30% jump in November-December are now softening. "Fine count yarn prices are showing a down ward trend due to a fall in cotton prices.In the past few days, prices have come down by about Rs 5-8 per kg," industry sources say.Extra long staple cotton is the main raw material for spinning fine cotton(80s-100s) yarn and mills in the south alone account for more than 60% of the total consumption of around 8-10 lakh bales in the country.
"There as been a moderate drop in the fine cotton yarn prices because of the decrease in input costs," SV Arumugam ,chairman ,Southern India Mills Association(SIMA),said,adding "As cotton prices have stabilised,yarn prices would rule steady." "If extra long staple cotton prices fall further, yarn prices will weaken," says A Ramani ,cotton analyst and joint secretary of the South India Cotton Association (SICA).There has been a steady decrease in cotton prices in the past two weeks.
Posted On : 2/10/2006 12:05:13 PM