Cotton yarn stable in south India; market awaits summer demand surge

Traders expect high temperatures and heatwaves to support cotton garments, increasing demand for fabrics and yarn to replenish declining stocks. However, the export demand for garments and upstream raw materials may continue to face uncertainty.

The Mumbai market noted a steady trend in cotton yarn prices, with most counts and varieties traded at previous levels. A trader from Mumbai informed Fibre2Fashion, "The heatwave may boost cotton yarn demand as buyers prefer cotton garments in the summer season. Higher retail demand will help clear stocks in the upstream industry, boosting demand for fabric and yarn in the textile value chain." However, trade was limited due to the general election, and several textile centres in Maharashtra reported thin trade due to political rallies.

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,425-1,470 (approximately $17.10-$17.64) and ₹1,330-1,390 per 5 kg (approximately $15.96-$16.68) (excluding GST), respectively. Other prices include 60 combed warp at ₹332-337 (approximately $3.98-$4.04) per kg, 80 carded weft at ₹1,410-1,450 (approximately $16.92-$17.40) per 4.5 kg, 44/46 carded warp at ₹255-262 (approximately $3.06-$3.14) per kg, 40/41 carded warp at ₹260-265 (approximately $3.12-$3.18) per kg, 40/41 combed warp at ₹292-298 (approximately $3.50-$3.58) per kg, and 30/32 carded warp at ₹247-250 (approximately $2.96-$3.00) per kg, according to trade sources.

The Tiruppur market witnessed better trade as voting ended here and in other cities of Tamil Nadu. However, the market noted weak demand due to uncertainty regarding the exports of garments and raw materials such as fabric and cotton yarn. Cotton yarn traded stably in Tiruppur.

In Tiruppur, knitting cotton yarn prices were noted on Thursday as: 30 count combed cotton yarn at ₹270-275 (approximately $3.23-$3.29) per kg (excluding GST), 34 count combed cotton yarn at ₹277-282 (approximately $3.32-$3.38) per kg, 40 count combed cotton yarn at ₹290-295 (approximately $3.47-$3.53) per kg, 30 count carded cotton yarn at ₹244-249 (approximately $2.92-$2.98) per kg, 34 count carded cotton yarn at ₹251-255 (approximately $3.01-$3.06) per kg, and 40 count carded cotton yarn at ₹257-262 (approximately $3.08-$3.14) per kg, as per market sources.

In Gujarat, cotton prices also stabilised over a couple of days. Cotton arrival is decreasing as the season is set to end. Several ginners are not receiving seed cotton from farmers and are trying to build stocks of cotton in anticipation of a price rise in the coming months. A trader said that cotton prices are expected to see an upward trend due to slow arrivals. Spinning mills will have to purchase cotton to keep production steady. Cotton arrivals were recorded at 14,000-15,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 43,000-45,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹58,500-59,000 (approximately $701.98-$707.98) per candy of 356 kg, while southern mills were looking to buy cotton at ₹59,000-59,500 (approximately $707.98-$713.98) per candy.

ALCHEMPro News Desk (KUL)