Cotton yarn demand picks up in South India; prices up in Mumbai

The Mumbai market saw a rise of ₹2-3 per kg in cotton yarn prices due to higher demand from the consumer industry. Mills are trying to pass on the recent increase in cotton prices. A trader from the Mumbai market told Fibre2Fashion, “Mills are buying expensive cotton to produce yarn so they can meet the increasing demand from the consumer industry. The present strong demand does not deter mills from increasing yarn prices. The entire textile value chain is active now ahead of the summer season.”

In Mumbai, 60-carded yarn of warp and weft varieties was traded at ₹1,440-1,480 (approximately $16.67-$17.23) and ₹1,390-1,440 per 5 kg (approximately $16.19-$16.77) (excluding GST), respectively. Other prices included 60 combed warp at ₹338-344 (approximately $3.94-$4.01) per kg, 80-carded weft at ₹1,420-1,480 (approximately $16.54-$17.23) per 4.5 kg, 44/46-carded warp at ₹262-272 (approximately $3.05-$3.17) per kg, 40/41-carded warp at ₹256-266 (approximately $2.98-$3.10) per kg, and 40/41 combed warp at ₹288-294 (approximately $3.35-$3.42) per kg, according to trade sources.

The Tiruppur market also witnessed higher demand for cotton yarn. Better buying activity relieved mills from selling pressure, and they are not considering reducing the discounts previously offered to attract buyers. However, cotton yarn prices remained steady in the South Indian market. According to market sources, a few deals were reported at higher prices, but in general, cotton yarn prices remained stable with some exceptions. Mills may officially increase cotton yarn prices after Pongal next week.

In Tiruppur, knitting cotton yarn prices were recorded as follows: 30-count combed cotton yarn at ₹255-263 (approximately $2.97-$3.06) per kg (excluding GST), 34-count combed cotton yarn at ₹264-271 (approximately $3.07-$3.16) per kg, 40-count combed cotton yarn at ₹276-288 (approximately $3.21-$3.35) per kg, 30-count carded cotton yarn at ₹235-240 (approximately $2.74-$2.79) per kg, 34-count carded cotton yarn at ₹240-245 (approximately $2.79-$2.85) per kg, and 40-count carded cotton yarn at ₹248-253 (approximately $2.89-$2.95) per kg.

In Gujarat, cotton prices increased by ₹200-300 per candy over the last couple of days. Ginning mills are offering higher prices for seed cotton to attract buyers, which has increased their cost of production in recent times. Traders stated that farmers are selling their produce to private traders if they receive prices higher than the Minimum Support Price (MSP). Consequently, the market price of seed cotton has risen above the MSP.

Cotton arrivals were estimated at 32,000-35,000 bales of 170 kg in Gujarat and 220,000-230,000 bales across the country. Trade sources indicated that the Cotton Corporation of India (CCI) continues to purchase more seed cotton from southern states compared to central and northern states.

The benchmark Shankar-6 cotton was quoted at ₹54,000-54,500 (approximately $628.82-$634.64) per candy of 356 kg, while southern mills were seeking to buy cotton at ₹55,000-55,500 (approximately $640.46-$646.29) per candy. Seed cotton (Kapas) was traded at ₹7,500-7,625 (approximately $87.34-$88.79) per quintal.

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)