Demand weak for cotton yarn in south India, prices remain steady

Cotton yarn prices remained stable in south India amid limited demand from the weaving industry. Trading hubs in Mumbai and Tiruppur reported similar trends. Traders noted a labour shortage as workers have not returned from their native places after Diwali, impacting operations in numerous power and hand looms. However, expectations are high for increased cotton yarn demand post the first week of December, coinciding with the ramp-up in summer garment production. Traders also anticipate stable prices, unaffected by current market conditions. 

The Mumbai market experienced a steady trend in cotton yarn prices, accompanied by a sense of positivity. The limited supply from spinners helped stabilise prices. A Mumbai trader informed Fibre2Fashion, "Mills have cut down on cotton yarn production, leading to fewer suppliers. Similar trends are observed in the fabric market. Although current demand is lacklustre, it might improve in the first week of next month." 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,400-1,420 and ₹1,275-1,330 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹315-322 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-259 per kg, 40/41 carded warp at ₹238-244 per kg, 40/41 combed warp at ₹262-266 and 30/32 carded warp at ₹227-232 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market also observed a stable trend in cotton yarn prices, with no significant improvement in demand from the weaving industry. Spinning mills in south India are striving to maintain current prices amidst weak demand. A Tiruppur trader explained to F2F, "There are expectations for a rise in summer garment manufacturing. However, the current market sentiment remains poor. Spinning mills that set higher mill rates must adjust their prices for the next month due to sluggish demand." 

In Tiruppur market, cotton yarn prices remained stable. The prices were noted as 30 count combed cotton yarn at ₹258-263 per kg (excluding GST), 34 count combed cotton yarn at ₹266-271 per kg, 40 count combed cotton yarn at ₹280-285 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 ₹240-250 per kg, as per TexPro. 

Cotton prices declined in the Gujarat market due to weak demand from spinning mills. On Tuesday, prices fell by ₹200-250 per candy (356 kg), marking a decrease of ₹700-800 per candy since the previous Friday. Traders attribute this drop to the rainy season in western India, which has disrupted Kapas arrivals in the markets. Ginners and spinners have been cautious in their purchases due to the weather. The impact of the rainy season on the cotton crop remains uncertain. A trader from Morbi, Gujarat, said that minor rains are not likely to cause significant damage to the crop. 

In the Gujarat market, Shankar-6 cotton was priced between ₹55,700-55,800 per candy (356 kg). Southern mills showed interest in purchasing cotton at ₹56,600-56,700 per candy. The arrival in Gujarat dropped to 15,000 bales (170 kg each), while the all-India arrival was estimated at 70,000-80,000 bales of the same weight. 

ALCHEMPro News Desk (KUL)