Cotton yarn demand stays subdued in south India

Spinning mills in southern India have rolled over their cotton rates for June, but are offering discounts to potential buyers. Although cotton yarn prices are largely stable, a trader from the Tiruppur market told Fibre2Fashion, “Around two-thirds of domestic demand for cotton yarn typically occurs in the first six months of the year. This means export demand becomes more important in the second half. Orders for the Christmas season are yet to materialise in the textile value chain. Uncertainty surrounding US tariffs is discouraging foreign buyers from placing new orders over the next couple of months.”

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.98-3.07) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3.11-3.19) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.25-3.40) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.76-2.82) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.82-2.87) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.91-2.96) per kg.

The Mumbai market saw stable cotton yarn prices amid sluggish demand. Trading activity remained thin ahead of Bakra-Eid and workers are expected to return after the festival. The weaving industry continues to face a labour shortage, and activities are unlikely to pick up before mid-June. Spinning mills and stockists are waiting for garment export orders that could boost cotton yarn demand.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$16.12-16.71) and ₹1,340-1,390 per 5 kg (~$15.66-16.26) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.68-3.75) per kg, 80 carded weft at ₹1,385-1,450 (~$16.18-16.94) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.10-3.18) per kg, 40/41 carded warp at ₹248-255 (~$2.90-2.98) per kg and 40/41 combed warp at ₹268-272 (~$3.13-3.18) per kg, according to trade sources.

In Gujarat, cotton demand from spinning mills remained limited, as mills were not confident about the yarn market outlook. While cotton yarn prices remained stable, stockists and ginners preferred to hold on to their stock and were unwilling to lower prices. Traders noted that current rates are nearly the same as six months ago. They are hopeful of securing higher prices during the upcoming off-season, although available stock this season is limited.

Cotton arrivals were estimated at 6,000–7,000 bales (170 kg each) in Gujarat and 19,000–20,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹54,000–54,300 (~$630.93–634.44) per candy (356 kg), while southern mills were bidding at ₹55,000–55,500 (~$642.62–648.46) per candy.

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)