Israel-Iran ceasefire eases pressure on south India cotton yarn market

The Tiruppur market has also calmed following the Israel-Iran ceasefire. Although demand for cotton yarn remained sluggish, optimism persisted for a recovery in the coming weeks. A trader from Tiruppur told Fibre2Fashion, “Cotton yarn traders and spinning mills are expecting better demand, as the ceasefire has improved the outlook for garment orders from the US and Europe. Earlier, the market was concerned about disruptions in international trade due to the conflict in the Middle East. Sellers are still under pressure to find potential buyers.”

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.96-3.06) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3.09-3.17) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.23-3.38) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.74-2.80) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.80-2.86) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.89-2.94) per kg.

The Mumbai market was also buoyed by the recent geopolitical developments. Although cotton yarn prices remained steady, spinning mills are attempting to increase their rates. According to trade sources, current demand for cotton yarn and fabric is subdued. However, if the ceasefire holds, international trade through the region could normalise, likely boosting market activity.

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$16.04-16.62) and ₹1,340-1,390 per 5 kg (~$15.58-$16.16) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.66-3.73) per kg, 80 carded weft at ₹1,385-1,450 (~$16.10-16.85) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.08-3.16) per kg, 40/41 carded warp at ₹248-255 (~$2.88-2.96) per kg and 40/41 combed warp at ₹268-272 (~$3.12-3.16) per kg, according to trade sources.

Cotton prices have moved higher, as spinning mills are purchasing from private ginners and stockholders. The Cotton Corporation of India (CCI) is offering cotton at ₹1,000 per candy (356 kg) above market rates. Cotton prices have risen by ₹500–700 per candy over the past couple of days. However, many buyers still prefer privately held cotton due to lower prices and more flexible terms. That said, CCI remains a reliable source for supply through the remainder of the current season, ending on September 30. Cotton arrivals were estimated at 3,000–4,000 bales (170 kg each) in Gujarat and 16,000–27,000 bales nationwide. Traders and stockists are actively selling from their inventories.

The benchmark Shankar-6 cotton was quoted at ₹54,000–54,200 (~$627.69–630.01) per candy for prompt supply, and ₹54,700–55,000 (~$635.82–639.31) for stock cotton. Southern mills were bidding at ₹55,500–56,000 (~$645.12–650.94) 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)