Mixed trend in South India's cotton yarn trade, prices up in Mumbai

In Mumbai, cotton yarn prices rose by ₹2 per kg, marking a notable increase, while other markets have seen sluggish demand in the last couple of weeks. A trader from the Mumbai market told Fibre2Fashion, "Power looms will be closed for 8-12 days during the Diwali festival. They had stocked up on cotton yarn for increased production to ensure sufficient stock for the next month. The rising cost of raw materials also contributed to the increase in cotton yarn prices.”

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,400-1,440 (approximately $16.65-$17.13) and ₹1,340-1,390 per 5 kg (approximately $15.94-$16.53) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-330 (approximately $3.84-$3.92) per kg, 80 carded weft at ₹1,345-1,385 (approximately $16.00-$16.47) per 4.5 kg, 44/46 carded warp at ₹250-260 (approximately $2.97-$3.09) per kg, 40/41 carded warp at ₹248-258 (approximately $2.95-$3.07) per kg and 40/41 combed warp at ₹276-280 (approximately $3.28-3.33) per kg, according to trade sources.

In contrast, the Tiruppur market exhibited stability in cotton yarn prices. Although mills maintained yarn prices at previous levels, they reduced production during the cotton arrival season. Traders noted that weaker demand from the downstream industry was offset by the rising cost of cotton. Untimely rains in Indian cotton-producing areas further delayed supply, and ICE cotton prices also rose on Monday. As a result, cotton yarn prices remained steady. However, spinning mills are operating at only 70 per cent of production capacity.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹266-274 (approximately $3.17-3.26) per kg (excluding GST), 34 count combed cotton yarn at ₹275-282 (approximately $3.28-3.36) per kg, 40 count combed cotton yarn at ₹290-296 (approximately $3.45-3.53) per kg, 30 count carded cotton yarn at ₹242-249 (approximately $2.88-2.97) per kg, 34 count carded cotton yarn at ₹247-251 (approximately $2.94-2.99) per kg and 40 count carded cotton yarn at ₹252-257 (approximately $3.00-3.06) per kg.

In Gujarat, cotton prices increased slightly due to the slower arrival of cotton and stronger ICE cotton prices. Several parts of central and southern India have experienced rains, delaying the cotton supply. The arrival of cotton in Gujarat and other regions has decreased, but it is expected to increase after Diwali when the weather becomes more stable.

Cotton arrivals were recorded at around 14,000-15,000 bales of 170 kg, including a negligible amount of new cotton. All-India arrivals were estimated at 55,000-60,000 bales. The benchmark Shankar-6 cotton of the new season was quoted between ₹56,000-56,500 (approximately $666.06-$672.00) per candy of 356 kg, while southern mills were looking to buy cotton at ₹57,000-57,500 (approximately $677.95-$683.90) per candy. Last season’s cotton was traded at nearly the same price, as several mills prefer to buy it over the new cotton.

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)