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South India's cotton yarn market hangs in the balance, prices stable

05 Dec '23
4 min read
Pic: Adobe Stock
Pic: Adobe Stock

Insights

  • In the cotton yarn market of South India, hope and disappointment coexist.
  • The Mumbai market saw increased demand from spinning mills, but prices remained stagnant.
  • Tiruppur experienced sluggish demand despite price stability.
  • Cotton prices dipped due to slow purchases and a payment crisis.
  • Cotton arrivals increased but remained low in Gujarat.

*.*pt"> The cotton yarn market in south India remained in a state of uncertainty, with a mix of hope and disappointment prevailing. The Mumbai market experienced increased demand from spinning mills; however, cotton yarn prices failed to see an improvement due to a variety of factors. In Tiruppur, the market observed sluggish demand despite price stability. Trade sources indicated that the market had anticipated an upturn in demand from the weaving industry, but the current purchasing activity did not provide the expected support. Buying from the weaving industry often sees temporary increases in various markets, but this strength diminishes rapidly. Market experts pointed out that a delayed payment cycle was also contributing to disruptions in the buying process. 

*.*pt"> Mumbai market experienced a slight uptick in demand from the weaving industry, although cotton yarn prices remained unchanged. A trader in Mumbai told Fibre2Fashion, "There was increased demand from downstream industries, but cotton yarn prices remained stable. Export demand for cotton yarn continued to be minimal in the south Indian market." If demand continues to improve, there is a possibility of cotton yarn prices trending upwards soon. 

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