Cotton yarn demand set to rise in south India post-Diwali

In Mumbai, cotton yarn prices rose by ₹2 per kg across various counts and varieties. A trader from Mumbai market told Fibre2Fashion, "Power loom owners buy cotton yarn before Diwali as a tradition. They will resume production after the Diwali holiday. Pre-Diwali buying has supported cotton yarn prices ahead of the week-long break. Demand for summer may begin after Diwali.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,410-1,450 (approximately $16.77-$17.25) and ₹1,340-1,400 per 5 kg (approximately $15.94-$16.65) (excluding GST), respectively. Other prices include 60 combed warp at ₹324-332 (approximately $3.85-$3.95) per kg, 80 carded weft at ₹1,350-1,390 (approximately $16.06-$16.53) per 4.5 kg, 44/46 carded warp at ₹252-262 (approximately $3.00-$3.12) per kg, 40/41 carded warp at ₹250-260 (approximately $2.97-$3.09) per kg and 40/41 combed warp at ₹278-282 (approximately $3.31-3.35) per kg, according to trade sources.

In contrast, Tiruppur experienced price stability in the cotton yarn market, facing slow demand due to cautious buying from the downstream industry. Traders mentioned that the market would observe a prolonged Diwali break. Following Diwali, demand from the fabric industry may improve as summer garment production picks up, though strong buying is uncertain. It is likely that demand will increase, but cotton yarn prices may remain steady.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹266-274 (approximately $3.16-3.26) per kg (excluding GST), 34 count combed cotton yarn at ₹275-282 (approximately $3.28-3.35) per kg, 40 count combed cotton yarn at ₹290-296 (approximately $3.45-3.52) per kg, 30 count carded cotton yarn at ₹242-249 (approximately $2.88-2.96) per kg, 34 count carded cotton yarn at ₹247-251 (approximately $2.94-2.99) per kg and 40 count carded cotton yarn at ₹252-257 (approximately $3.00-3.06) per kg.

In Gujarat, cotton prices stabilised after easing in the previous session. Cotton arrivals have been delayed further due to untimely rains in Gujarat and parts of central and southern India. Trade sources report that arrivals will remain limited in the coming weeks. The rains have not only delayed the crop but also affected its quality and quantity. A weaker ICE cotton market has dampened sentiment in the domestic cotton market.

Cotton arrivals were recorded at around 14,000-15,000 bales of 170 kg, with all-India arrivals estimated at 60,000-70,000 bales. The benchmark Shankar-6 cotton of the new season was quoted between ₹55,000-55,500 (approximately $654.18-$660.13) per candy of 356 kg, while southern mills were looking to buy cotton at ₹56,000-56,500 (approximately $666.08-$672.02) per candy. Last season’s cotton traded at almost the same prices as several mills preferred buying it over the new crop.

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)