South Indian cotton yarn prices steady amid trade concerns

In the Mumbai market, average demand was observed despite earlier gains in cotton yarn prices this week. Prices remained stable over the past couple of days. The market is expected to witness better demand for cotton yarn next month. However, future price movements will largely depend on cotton prices in the coming weeks. A trader from the Mumbai market told Fibre2Fashion, “A possible ban on cotton yarn imports via the land route by Bangladesh would be negative news for the domestic cotton yarn trade. However, local demand is expected to improve next month as payment flows are likely to pick up in the new fiscal.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,390-1,415 (approximately $16.26-$16.56) and ₹1,335-1,375 per 5 kg (approximately $15.62-$16.09) (excluding GST), respectively. Other prices include 60 combed warp at ₹319-323 (approximately $3.73-$3.78) per kg, 80 carded weft at ₹1,370-1,430 (approximately $16.03-$16.73) per 4.5 kg, 44/46 carded warp at ₹266-271 (approximately $3.11-$3.17) per kg, 40/41 carded warp at ₹252-258 (approximately $2.95-$3.02) per kg and 40/41 combed warp at ₹268-272 (approximately $3.14-3.18) per kg, according to trade sources.

The Tiruppur market also reported stability in cotton yarn prices and witnessed above-average demand. Buying interest from the consumer industry and stockists is expected to improve next week. Commenting on the Bangladesh development, traders said it is undoubtedly bad news for India’s cotton yarn trade. However, the textile industry in the neighbouring country cannot entirely avoid importing yarn from India. Outbound shipments are expected to shift to sea routes, which are still permitted.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (approximately $2.98-3.08) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.09-3.17) per kg, 40 count combed cotton yarn at ₹276-288 (approximately $3.23-3.37) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.75-2.81) per kg, 34 count carded cotton yarn at ₹240-245 (approximately $2.81-2.87) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.90-2.96) per kg.

In Gujarat, cotton prices rose by ₹200–300 per candy of 356 kg, driven by higher global cotton prices and end-of-season buying by spinning mills. ICE cotton prices saw strong growth on Thursday for the second consecutive trading session. The rise in cotton prices increased the attractiveness of Indian cotton for overseas buyers. Domestic spinning mills were also motivated to purchase cotton to secure raw material at affordable prices.

Cotton arrivals were estimated at 7,000–9,000 bales of 170 kg in Gujarat and 60,000–70,000 bales across the country. The benchmark Shankar-6 cotton was quoted between ₹54,200–54,500 (approximately $634.15–$637.66) per candy of 356 kg, while southern mills were looking to buy cotton at ₹55,000–55,300 (approximately $643.51–$647.02) per candy. Seed cotton (kapas) was traded at around ₹7,480–7,550 (approximately $87.52–$88.34) per quintal.

ALCHEMPro News Desk (KUL)