Cotton yarn market faces mixed trends in south India as demand varies

In Mumbai, the market observed stability in cotton yarn prices amid average demand from the consumer industry and stockists. A trader from the Mumbai market told Fibre2Fashion, "The consumer industry and stockists are buying cotton yarn on a regular basis. The market will see higher demand next month when summer demand picks up. There was optimism in the Mumbai cotton yarn market."

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,430-1,470 (approximately $16.82-$17.29) and ₹1,370-1,420 per 5 kg (approximately $16.11-$16.70) (excluding GST), respectively. Other prices include 60 combed warp at ₹334-341 (approximately $3.93-$4.01) per kg, 80 carded weft at ₹1,400-1,470 (approximately $16.46-$17.29) per 4.5 kg, 44/46 carded warp at ₹258-269 (approximately $3.03-$3.16) per kg, 40/41 carded warp at ₹252-262 (approximately $2.96-$3.06) per kg and 40/41 combed warp at ₹284-291 (approximately $3.34-3.42) per kg, according to trade sources.

However, in Tiruppur, knitting cotton yarn prices decreased by ₹1-2 per kg as mills faced pressure to find buyers, offering higher discounts on their mill rates. Traders noted that cotton yarn demand is very slow but may improve next month with the increase in summer garmenting demand. Currently, mills and stockists are struggling to find buyers.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (approximately $3.00-3.09) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.10-3.19) per kg, 40 count combed cotton yarn at ₹275-285 (approximately $3.23-3.35) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.76-2.82) per kg, 34 count carded cotton yarn at ₹240-244 (approximately $2.76-2.88) per kg and 40 count carded cotton yarn at ₹248-253 (approximately $2.92-2.98) per kg.

In Gujarat, cotton prices fell by ₹500 per candy of 356 kg in the last couple of days. A bearish tone in ICE cotton and slow demand from the local consumer industry have led to the price drop. However, aggressive buying by CCI on minimum support prices helped maintain current levels of seed cotton. Ginning mills in the central and southern zones are facing a disparity of ₹3,000-4,000 per candy of 356 kg. Traders warned that private cotton stocks will be limited in the coming months of the current season. The textile industry may feel the impact of expensive cotton as CCI will be the sole supplier in the country. Cotton arrivals were estimated at 28,000-30,000 bales of 170 kg in Gujarat and 200,000-220,000 bales across the country.

The benchmark Shankar-6 cotton was quoted between ₹53,000-53,500 (approximately $623.26-$629.14) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,000-54,500 (approximately $635.02-$640.90) per candy. Seed cotton (Kapas) was traded at around ₹7,400-7,500 (approximately $87.02-$88.20) per quintal.

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)