Cotton yarn demand slows ahead of Pongal in south India, prices steady

Cotton yarn prices have stabilised in both the Tiruppur and Mumbai markets, reflecting sluggish demand from the weaving industry. In Mumbai, the market has seen a consistent pricing trend due to limited cotton yarn uptake towards the end of the buying cycle. Weaving and garment manufacturing activities are anticipated to slow down in Tiruppur in the upcoming week, owing to the Pongal festival. 

Speaking to Fibre2Fashion, a trader from Mumbai said, "The upcoming festivals of Pongal and Makar Sankranti have led to slower purchasing. Power looms have been cautious in their fresh buying and production activities. They are producing slower-moving varieties of fabric based on orders. Additionally, the garment industry has also shown a slowdown in fabric purchasing." 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,425-1,450 and ₹1,310-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹318-325 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-263 per kg, 40/41 carded warp at ₹242-248 per kg, 40/41 combed warp at ₹264-268 and 30/32 carded warp at ₹232-237 per kg, according to Fibre2Fashion's market insight tool TexPro. 

A trader from Tiruppur told F2F, "Buyers have been slow in taking delivery of cotton yarn they had previously ordered. They are expected to show more interest in receiving the goods after the Pongal festival. Production activities are likely to remain slow until a week after Pongal. Fresh demand is anticipated only after the festival concludes." 

In Tiruppur, cotton yarn prices were noted as 30 count combed cotton yarn at ₹258-262 per kg (excluding GST), 34 count combed cotton yarn at ₹268-273 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹237-242 per kg and 40 count carded cotton yarn at ₹240-246 per kg, as per TexPro. 

The steady trend in cotton prices continued in Gujarat. Spinning mills were very slow in the fresh purchase of natural fibre, as they lacked confidence in the demand from the weaving industry. According to traders, spinning mills were also very cautious due to payment constraints. In the Gujarat market, Shankar-6 cotton was priced between ₹55,000 and ₹55,200 per candy of 356 kg. Southern mills intended to buy cotton at ₹55,700 to ₹56,200 per candy. The arrival of cotton in Gujarat was 40,000 bales of 170 kg each. The all-India arrival was estimated at 184,000 to 186,000 bales of 170 kg. 

ALCHEMPro News Desk (KUL)