Cotton yarn demand improves in south India; prices hold firm

In the Mumbai market, cotton yarn demand was average. Prices remained stable due to steady cotton fibre costs. A trader from Mumbai told Fibre2Fashion, “Power looms and auto looms are operating at 80–90 per cent capacity, which reflects average demand from the downstream industry. Cotton yarn prices are unlikely to decline in the near future, as current demand is sufficient to sustain prices.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$15.90-16.47) and ₹1,340-1,390 per 5 kg (~$15.44-16.01) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.63-3.70) per kg, 80 carded weft at ₹1,385-1,450 (~$15.96-16.70) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.05-3.13) per kg, 40/41 carded warp at ₹248-255 (~$2.86-2.94) per kg and 40/41 combed warp at ₹268-272 (~$3.09-3.13) per kg, according to trade sources.

Tiruppur also recorded stronger demand from fabric manufacturers. Mills are beginning to reduce discounts in an attempt to raise actual selling rates by ₹1–2 per kg. Nevertheless, yarn prices remained steady in Tiruppur. Traders noted that while garment exports to the US may be a concern, overall export demand is stable. The recent India–UK trade deal has also boosted sentiment in the textile value chain.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.94-3.03) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3-06-3.14) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.20-3.35) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.72-2.78) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.78-2.83) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.87-2.91) per kg.

In Gujarat, cotton prices also remained steady, under pressure from traders who had purchased cotton through Cotton Corporation of India (CCI) auctions. Traders and stockists must offload this cotton before the delivery deadline. As CCI is strict about delivery compliance, many traders are selling at prices lower than current market levels. Cotton was booked on margin money, compelling traders to liquidate their holdings.

Cotton arrivals fell to around 14,000–15,000 bales (170 kg each), with Gujarat receiving 2,000–3,000 bales. The benchmark Shankar-6 cotton was quoted at ₹58,000–58,200 (~$668.17–670.47) per candy (356 kg) for stock cotton.

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

ALCHEMPro News Desk (KUL)