Delayed festival season worrisome for south India's cotton yarn market

In Mumbai and Tiruppur, cotton yarn prices have remained stable, despite concerns of a delayed start to the festival season due to the additional Hindu month, Adhikmas. This delay is projected to postpone the uptick in domestic demand, normally seen in July, to late August. 

The Indian textile industry, reliant on domestic demand due to slower export orders, is closely watching the extended Shravan month, which will continue till end of August instead of its usual end in the first half of August. “Purchases in the yarn trade should have increased in July. However, we anticipate any improvement to occur only by the end of this month. The retail demand for end products is expected to rise in September,” a trader from Mumbai told Fibre2Fashion. 

In Mumbai, 60 count carded cotton yarn of warp and weft varieties was sold at ₹1,420-1,445 and ₹1,290-1,330 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹325-330 per kg, 80 carded (weft) cotton yarn at ₹1,325-1,350 per 4.5 kg, 44/46 count carded cotton yarn (warp) at ₹254-260 per kg, 40/41 count carded cotton yarn (warp) at ₹242-246 per kg and 40/41 count combed yarn (warp) at ₹270-275 per kg, according to Fibre2Fashion's market insight tool TexPro. 

Meanwhile, in Tiruppur, cotton yarn prices remained steady due to lacklustre demand and a stagnant weaving industry. "Market sentiment has remained bearish as buyers are refraining from making new purchases. Additionally, a slump in ICE cotton prices has negatively affected market sentiment. The purchasing activity from the consumer industry has not been supportive either," a local trader told F2F. 

Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹255-262 per kg (excluding GST), 34 count combed cotton yarn at ₹265-272 per kg, 40 count combed cotton yarn at ₹275-282 per kg, 30 count carded cotton yarn at ₹233-238 per kg, 34 count carded cotton yarn at ₹241-247 per kg and 40 count carded cotton yarn at ₹245-252 per kg, as per TexPro. 

In contrast to the stability in Mumbai and Tiruppur, cotton prices in Gujarat have slipped further after weaker indications from ICE cotton, falling ₹300-400 per candy of 356 kg, traders said. Despite the drop, mills continue to buy the natural fibre, indicating low stock levels of raw material for the off-season. Cotton was traded at ₹55,200-55,600 per candy of 356 kg, with cotton arrivals well within 10,000 bales of 170 kg in Gujarat. All India arrival was estimated at 35,000-37,000 bales of 170 kg. 

ALCHEMPro News Desk (KUL)