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South Indian cotton yarn market sees demand surge amid stable prices

12 Dec '23
3 min read
Pic: Adobe Stock
Pic: Adobe Stock

Insights

  • In south India, cotton yarn demand is up, particularly in the weaving industry.
  • Prices remain stable as spinning mills prioritise sales volume over profit margins.
  • Mumbai and Tiruppur report consistent trading levels, expecting steady demand ahead.
  • Gujarat's cotton prices fell due to mill caution, with Shankar-6 cotton priced at ₹****-**** per candy.

*.*pt"> In south India, the market has observed enhanced demand from the weaving industry. Trade experts noted that buyers showed interest in purchasing cotton yarn yet were reluctant to pay higher prices. Spinning mills were more focused on increasing sales rather than margins. In Mumbai and Tiruppur markets, cotton yarn was traded at the previous price levels. Traders anticipate that demand will likely remain positive in the near future, although prices may stay at the current level for at least the month of December. 

*.*pt"> The Mumbai market experienced stability in cotton yarn prices. Mills and stockists were able to sell larger quantities due to strong demand. A Mumbai trader told Fibre2Fashion, "Spinning mills faced challenges selling cotton yarn at elevated prices, leading them to focus on volume over profit margins." Demand from the downstream industry may decline in the latter half of December as market participants prepare for New Year celebrations. 

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