Cotton yarn demand weakens in South India amid export uncertainty

A bearish tone persisted in the Mumbai cotton yarn market. While prices remained stable, mills and stockists largely insisted on holding rates. However, they were open to offering discounts for bulk purchases on a case-by-case basis. A trader from the Mumbai market told Fibre2Fashion, “Israel’s attack on Iran has further dashed hopes for strong garment export demand. Importers are adopting a cautious approach to placing orders amid such geopolitical instability. The spike in crude oil prices following the attack is also impacting energy and other economic sectors. Additionally, uncertainty regarding US tariffs is a cause of concern in the market.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (approximately $16.02-$16.60) and ₹1,340-1,390 per 5 kg (approximately $15.56-$16.14) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (approximately $3.66-$3.73) per kg, 80 carded weft at ₹1,385-1,450 (approximately $16.08-$16.84) per 4.5 kg, 44/46 carded warp at ₹265-272 (approximately $3.08-$3.16) per kg, 40/41 carded warp at ₹248-255 (approximately $2.88-$2.96) per kg, and 40/41 combed warp at ₹268-272 (approximately $3.11-3.16) per kg, according to trade sources.

The Tiruppur market also witnessed sluggish demand for cotton yarn. Spinning mills are offering discounts on bulk orders as they struggle to find potential buyers. Trade sources noted that global tensions, a liquidity crunch, and labour shortages are also affecting cotton yarn demand. Manufacturing units are facing cash flow issues as their finished goods remain unsold, locking up liquidity—a widespread problem across the textile value chain.

In Tiruppur, knitting cotton yarn prices were noted as: 30 count combed cotton yarn at ₹255-263 (approximately $2.96-3.05) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.09-3.17) per kg, 40 count combed cotton yarn at ₹278-291 (approximately $3.23-3.38) per kg, 30 count carded cotton yarn at ₹236-241 (approximately $2.76-2.46) per kg, 34 count carded cotton yarn at ₹241-246 (approximately $2.80-2.86) per kg, and 40 count carded cotton yarn at ₹249-253 (approximately $2.89-2.94) per kg.

In Gujarat, cotton trade remained limited, with prices staying steady. Availability of cotton with ginning mills and stockists was low, prompting large buyers to source cotton from the Cotton Corporation of India (CCI). The government nodal agency has a significant stockpile, having procured 100 lakh bales of cotton this season. Ginning mills have been unable to purchase cotton due to price disparity, as market prices remain lower than the Minimum Support Price (MSP) at which the CCI bought cotton from farmers.

Cotton arrivals were estimated at 5,000–6,000 bales of 170 kg in Gujarat and 18,000–20,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹53,700–54,000 (approximately $623.51–$626.99) per candy of 356 kg, while southern mills were bidding at ₹54,800–55,000 (approximately $636.28-$638.60) 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)