Cotton yarn prices hold steady amidst sluggish market in south India

The Mumbai market has seen stability in cotton yarn prices. Tight payment conditions, the year-end holiday, and uncertainty regarding demand from the downstream industry are major factors for slow buying. A trader from the Mumbai market told Fibre2Fashion, "Cotton yarn demand is likely to remain slow until the middle of next month. Summer demand is expected to pick up at the end of January. People in the textile value chain are not very keen on trading ahead of the New Year celebrations."

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,430-1,470 (approximately $17.04-$17.51) and ₹1,370-1,420 per 5 kg (approximately $16.33-$16.92) (excluding GST), respectively. Other prices include 60 combed warp at ₹334-341 (approximately $3.98-$4.06) per kg, 80 carded weft at ₹1,400-1,470 (approximately $16.69-$17.51) per 4.5 kg, 44/46 carded warp at ₹258-269 (approximately $3.08-$3.20) per kg, 40/41 carded warp at ₹254-264 (approximately $3.02-$3.12) per kg and 40/41 combed warp at ₹284-291 (approximately $3.37-3.46) per kg, according to trade sources.

In Tiruppur, knitting cotton yarn prices were also unchanged due to slow demand. There were slow trading activities in the southern market. Traders said that mere export demand cannot lift market sentiments. Both domestic and export demands are crucial for support. Currently, spinning mills are struggling to find buyers even at slightly higher discounts.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹257-265 (approximately $3.03-3.13) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.14-3.22) per kg, 40 count combed cotton yarn at ₹277-287 (approximately $3.27-3.39) per kg, 30 count carded cotton yarn at ₹236-241 (approximately $2.79-2.85) per kg, 34 count carded cotton yarn at ₹241-243 (approximately $2.74-2.88) per kg and 40 count carded cotton yarn at ₹249-254 (approximately $2.95-3.01) per kg.

In Gujarat, cotton prices eased by ₹300-500 per candy of 356 kg in the last couple of days. Ginners are facing disparities due to the fall in cotton prices. Cotton procurement by the Cotton Corporation of India (CCI) has stabilised seed cotton prices. Traders said that CCI is buying cotton at a minimum support price, which is higher than open market rates. There is a difference of ₹100-125 per quintal in seed cotton prices, creating a disparity of ₹2,000 per candy for ginning mills. Consequently, they have ceased ginning activities and are considering renting their mills to CCI for ginning. Traders said that several large spinning mills and textile companies have imported large quantities of cotton due to a steep fall in prices, which also dried up demand for cotton fibre from the domestic market. Cotton arrival was estimated at 28,000-30,000 bales of 170 kg in Gujarat and 200,000-220,000 bales in the country.

The benchmark Shankar-6 cotton was quoted between ₹53,500-54,000 (approximately $630.17-$636.06) per candy of 356 kg, while southern mills were looking to buy cotton at ₹54,000-54,500 (approximately $636.06-$641.95) per candy. Seed cotton (Kapas) was traded at around ₹7,400-7,500 (approximately $87.39-$88.57) 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)