Mixed sentiment in south Indian cotton yarn trade, prices stable

Mumbai recorded average to strong demand, with power and auto looms operating at higher capacities. However, cotton yarn prices remained largely unchanged. A trader from the Mumbai market told Fibre2Fashion, “Fabric demand is likely to pick up in the coming months as the festive season boosts garment sales in the domestic market. But the current demand is insufficient to support a price rise in cotton yarn. If market sentiment remains positive, we may see an upward trend in yarn prices.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$15.98-16.56) and ₹1,340-1,390 per 5 kg (~$15.52-16.10) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.65-3.73) per kg, 80 carded weft at ₹1,385-1,450 (~$16.04-16.79) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.07-3.15) per kg, 40/41 carded warp at ₹248-255 (~$2.87-2.95) per kg and 40/41 combed warp at ₹268-272 (~$3.10-3.15) per kg, according to trade sources.

In Tiruppur, the cotton yarn market saw subdued demand. Buyers remained cautious and delayed fresh purchases, awaiting the outcome of trade negotiations between India and the US. Traders expressed concern that in the absence of a trade agreement, tariffs on Indian garments at US ports may increase to 26 per cent from the current 10 per cent. Given that the US is the largest buyer of Indian garments and textiles, the uncertainty dampened market sentiment. Mills are eager to raise cotton yarn prices, but weak demand across yarn and fabric is holding them back.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.95-3.05) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3-08-3.16) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.22-3.37) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.73-2.79) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.79-2.85) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.88-2.93) per kg.

In Gujarat, cotton prices remained stable due to slow demand from the downstream industry. Traders noted that cotton prices are unlikely to rise unless demand picks up. In fact, heavy selling pressure could weigh on prices further. Many traders had procured substantial cotton stocks from the Cotton Corporation of India (CCI), which now need to be offloaded to downstream industries. This is expected to increase market supplies in the coming weeks and may prevent CCI from raising its auction base price in future sales.

Daily cotton arrivals declined to around 14,000–15,000 bales (170 kg each), with Gujarat accounting for 2,000–3,000 bales. Benchmark Shankar-6 cotton was quoted at ₹58,000–58,200 (~$671.59–673.91) 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)