Demand rises in south India's cotton yarn market, prices up in Mumbai

Market experts stated that stronger ICE cotton may increase the export demand for cotton yarn. Domestic cotton prices have also risen, but the increase remained limited compared to ICE cotton. Cotton prices gained ₹500 per candy of 356 kg in the last couple of days. Although the prices remained steady on Tuesday amid limited buying.

Cotton yarn traded higher by ₹2 per kg in Mumbai as spinning mills quoted higher prices after the rise in ICE cotton. A trader from Mumbai told Fibre2Fashion, "Cotton yarn demand was not promising from the consumer industry, but stronger cotton boosted the confidence of spinning mills. They expected better export orders after the increase in international cotton prices.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,410-1,460 (approximately $16.95-$17.55) and ₹1,280-1,360 per 5 kg (approximately $15.39-$16.35) (excluding GST), respectively. Other prices include 60 combed warp at ₹329-333 (approximately $3.96-$4.00) per kg, 80 carded weft at ₹1,360-1,400 (approximately $16.35-$16.83) per 4.5 kg, 44/46 carded warp at ₹257-262 (approximately $3.09-$3.15) per kg, 40/41 carded warp at ₹252-260 (approximately $3.03-$3.13) per kg, 40/41 combed warp at ₹290-295 (approximately $3.49-$3.55) per kg, and 30/32 carded warp at ₹245-248 (approximately $2.95-$2.98) per kg, according to trade sources.

The Tiruppur market also expected higher demand in the coming weeks as buyers may rush to the market in anticipation of a rise in the natural fibre. Trade sources said that mills were quoting effectively higher prices as they reduced discounts. They can increase card rates at the beginning of June 2024. The market may see better demand in the coming weeks, although retail demand for garments did not see any significant increase. Cotton yarn traded steadily in the Tiruppur market as of now.

In Tiruppur, knitting cotton yarn prices were noted on Thursday as: 30 count combed cotton yarn at ₹268-273 (approximately $3.22-3.28) 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 $3.48-3.54) per kg, 30 count carded cotton yarn at ₹239-243 (approximately $2.87-2.92) per kg, 34 count carded cotton yarn at ₹245-249 (approximately $2.94-2.99) per kg and 40 count carded cotton yarn at ₹251-256 (approximately $3.01-3.07) per kg, as per market sources.

In Gujarat, cotton prices were stable after a rise in the previous trading sessions. It has noticed a further rise of ₹500 per candy of 356 kg since late last week. Cotton yarn trade remained range-bound on Tuesday as ICE cotton remained closed on Monday. Today, ICE cotton eased after a positive opening this morning.

Cotton arrivals were recorded at 12,000-14,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 35,000-40,000 bales. In Gujarat, the benchmark Shankar-6 cotton was quoted between ₹57,000-57,500 (approximately $685.30-$691.32) per candy of 356 kg, while southern mills were looking to buy cotton at ₹57,500-58,000 (approximately $691.32-$697.33) per candy.

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)