Mixed trend in south India's cotton yarn market; prices drop in Mumbai

The Mumbai market has observed a sluggish tone in cotton yarn trade. The price of 40-count cotton yarn declined by ₹4-5 per kg, while 60-count yarn also experienced pessimistic sentiments. A trader from Maharashtra told Fibre2Fashion, "The market is likely to see lower demand because festivals may not bolster market sentiments. The textile value chain has sufficient stocks to meet festival demand. Buyers are seeking new deals only for need-based products." This implies that they are buying cotton yarn specifically for particular counts and varieties. 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,460-1,480 and ₹1,350-1,380 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹322-328 per kg, 80 carded weft at ₹1,340-1,380 per 4.5 kg, 44/46 carded warp at ₹260-265 per kg, 40/41 carded warp at ₹240-245 per kg and 40/41 combed warp at ₹265-270 per kg, according to Fibre2Fashion's market insight tool TexPro. 

The Tiruppur market has not seen any fluctuations in cotton yarn prices. Tiruppur, south India's prominent garment hub, is experiencing reduced export orders due to global economic concerns. A trader from Tiruppur told Fibre2Fashion, "Cotton yarn demand has been average, which has been sufficient to maintain current price levels. Traders were waiting to pass on the recent price hike by spinning mills, but they are uncertain about any improvement in market sentiments. Neither exports nor domestic demand have been able to inspire hope for the market." 

Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹263-268 per kg (excluding GST), 34 count combed cotton yarn at ₹271-276 per kg, 40 count combed cotton yarn at ₹282-287 per kg, 30 count carded cotton yarn at ₹238-243 per kg, 34 count carded cotton yarn at ₹242-247 per kg and 40 count carded cotton yarn at ₹250-255 per kg, as per TexPro. 

In Gujarat, cotton prices have risen by ₹300-400 per candy of 356 kg in the last couple of days. A weaker trend in ICE cotton and a decline in domestic cotton futures have dampened sentiments in the spot market. Although there have been reports of crop damage in some states due to adverse weather conditions, these have not yet buoyed market sentiments, as traders have not given weight to these reports. Mills are also exercising caution in new purchases due to weaker demand from the downstream industry. In the Gujarat market, Shankar-6 cotton was quoted between ₹61,200-61,500 per candy. The arrival was around 10,000 bales of 170 kg in Gujarat, with an estimated all-India arrival of 28,000-30,000 bales. 

ALCHEMPro News Desk (KUL)