Cotton yarn demand stays weak in south India; Tiruppur prices dip

The Mumbai market saw stability in cotton yarn prices amid thin trade. The natural calamity has disrupted normal life and business activities. A trader from Mumbai told Fibre2Fashion, “Heavy rains in Mumbai and other areas brought normal life and economic activities to a standstill. However, the rains have improved prospects for higher cotton yarn demand as workers return to power looms and auto looms following the first spell of rain. Increased worker attendance is expected to boost cotton yarn consumption.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$16.17-16.75) and ₹1,340-1,390 per 5 kg (~$15.70-16.28) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.69-3.76) per kg, 80 carded weft at ₹1,385-1,450 (~$16.22-16.99) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.10-3.19) per kg, 40/41 carded warp at ₹248-255 (~$2.91-2.99) per kg and 40/41 combed warp at ₹268-272 (~$3.14-3.19) per kg, according to trade sources.

The Tiruppur market continued to experience weak demand for cotton yarn despite rainfall in the region. Sluggish demand pushed yarn prices down by ₹1–2 per kg. Market sources reported that spinning mills are under pressure due to slow demand and are being forced to lower their prices, affecting their profit margins. Current market conditions are especially challenging for small spinning mills, most of which produce carded cotton yarn.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.99-3.08) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3.12-3.20) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.26-3.41) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.76-2.82) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.82-2.88) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.92-2.96) per kg.

In Gujarat, cotton prices remained stable amid slow lifting by spinning mills. They have scaled back purchases of raw cotton due to sufficient yarn demand. Traders noted that although ICE cotton prices were higher, local bearish sentiment dominated the market. The Cotton Association of India has reported slow consumption and abundant cotton availability this season. Traders expect a continued sluggish trend in cotton prices during the current marketing season, which will end in September.

Cotton arrivals were estimated at 3,000–4,000 bales of 170 kg in Gujarat and 22,000–26,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹54,000–54,300 (~$632.59–636.10) per candy of 356 kg, while southern mills were bidding at ₹55,000–55,500 (~$644.31–$650.16) 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)