Cotton yarn prices stable in south India amid uncertain market demand

Cotton yarn prices did not experience any significant movement in the Tiruppur and Mumbai markets of south India, as buyers were uncertain about future demand from the weaving industry. Traders noted that there was sluggish demand for fabric from the garment industry. Yarn buyers were cautious regarding summer demand, as the current domestic and global market conditions were not very encouraging. The Tiruppur market partially reopened after the Pongal festival. Traders are expecting limited trade in the next week as well, due to the inauguration of the Ayodhya temple. 

A trader from Mumbai told Fibre2Fashion, "Buyers were not very confident about strong demand for the coming summer season. They were cautious about new purchases. Power looms are not operating at full capacity. Cotton yarn prices remained stable in the local market." 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,425-1,450 and ₹1,310-1,380 per 5 kg (excluding GST), respectively. Other prices included 60 combed warp at ₹318-325 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-263 per kg, 40/41 carded warp at ₹242-248 per kg, 40/41 combed warp at ₹264-268, and 30/32 carded warp at ₹232-237 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market may see normal trading next week, but it could witness limited trade at the beginning of the coming week. If demand increases, spinning mills may reduce the discounts offered on various counts and varieties of cotton yarn, according to a local trader. 

In Tiruppur, cotton yarn prices were noted as 30 count combed cotton yarn at ₹258-262 per kg (excluding GST), 34 count combed cotton yarn at ₹268-273 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹237-242 per kg, and 40 count carded cotton yarn at ₹240-246 per kg, as per TexPro. 

Cotton prices saw an increase in the Gujarat market due to strong demand from multinational corporations (MNCs). Trade sources reported that MNCs had purchased 50,000 bales of 170 kg of cotton in recent days. Cotton prices increased by ₹100-200 per candy of 356 kg. In the Gujarat market, Shankar-6 cotton was quoted between ₹54,800-55,300 per candy of 356 kg. Southern mills intended to buy cotton at ₹55,700-56,200 per candy. The arrival was 38,000-40,000 bales of 170 kg in Gujarat, with an all-India arrival estimated at 180,000-122,000 bales. 

ALCHEMPro News Desk (KUL)