Cotton yarn dips in Mumbai as demand stays weak in south India

The Mumbai market recorded a price drop of ₹3–4 per kg across various counts and varieties of cotton yarn, primarily due to weaker demand from the loom sector. Fabric manufacturers are also facing labour shortages, resulting in reduced production. A Mumbai-based trader told Fibre2Fashion, “The cotton yarn market is experiencing an unprecedented slump in demand from fabric manufacturers. A payment crisis has also emerged due to slow offtake from the downstream industry. Bangladesh is a key market for Indian yarn and fabric, but Indian suppliers are currently seeing insufficient demand from the neighbouring country.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (approximately $16.12-16.70) and ₹1,340-1,390 per 5 kg (approximately $15.65-16.24) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (approximately $3.68-3.75) per kg, 80 carded weft at ₹1,385-1,450 (approximately $16.18-16.94) per 4.5 kg, 44/46 carded warp at ₹265-272 (approximately $3.10-3.18) per kg, 40/41 carded warp at ₹248-255 (approximately $2.90-2.98) per kg and 40/41 combed warp at ₹268-272 (approximately $3.13-3.18) per kg, according to trade sources.

Tiruppur market did not witness any major drop in cotton yarn prices, although it is also grappling with sluggish domestic and export demand. According to market sources, sentiments have not worsened further, but spinning mills are under pressure to find potential buyers. However, the market may see some improvement next month.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹257-265 (approximately $3.00-3.10) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.11-3.19) per kg, 40 count combed cotton yarn at ₹278-291 (approximately $3.25-3.40) per kg, 30 count carded cotton yarn at ₹237-242 (approximately $2.77-2.83) per kg, 34 count carded cotton yarn at ₹242-247 (approximately $2.83-2.89) per kg and 40 count carded cotton yarn at ₹250-255 (approximately $2.92-2.98) per kg.

In Gujarat, cotton prices remained steady amid limited trading activity. Buyers were reluctant to make fresh purchases due to slow lifting by the downstream industry. Market sources indicated that spinning mills were interested in buying cotton at current price levels but are facing a cash crunch. Mills are struggling to liquidate their finished goods inventory due to slow activity in the garment sector. Limited stock with private traders and stockists also contributed to the muted trade. Even the government’s nodal agency, the Cotton Corporation of India (CCI), faced slow buying due to payment constraints.

Cotton arrivals were estimated at 4,000–5,000 bales of 170 kg in Gujarat and 35,000–38,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹54,000–54,300 (approximately $630.82–634.32) per candy of 356 kg, while southern mills were bidding at ₹55,000–55,500 (approximately $642.50–648.34) 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)