Rising cotton arrival dampen yarn demand in south India, prices steady

In Mumbai, cotton yarn prices remained stable. Power loom owners are awaiting an uptick in summer demand but are cautious due to the delay, which has led fabric producers to proceed with caution. A trader in the Mumbai market told Fibre2Fashion, "Power loom owners are reluctant to produce and stock large quantities of fabric due to uncertainty in demand and preferred varieties. Increased cotton arrivals are also reducing interest among power loom owners, and lower cotton prices will likely drive down prices in both yarn and fabric."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,400-1,440 (approximately $16.67-$17.15) and ₹1,330-1,380 per 5 kg (approximately $15.84-$16.44) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-330 (approximately $3.84-$3.93) per kg, 80 carded weft at ₹1,340-1,380 (approximately $15.96-$16.44) per 4.5 kg, 44/46 carded warp at ₹250-260 (approximately $2.98-$3.10) 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 $3.29-3.33) per kg, according to trade sources.

Despite no trading activity in Tiruppur, a trader noted that the market had experienced slow demand on Thursday due to various factors, with no change in cotton yarn prices.

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 showed a bearish trend due to rising arrivals and demand concerns. Prices dropped by ₹200-300 per candy (356 kg) over the past few days. Traders mentioned that spinning mills are concerned about the demand for fabric from the downstream industry, leading them to adopt a wait-and-see approach as cotton prices may remain under pressure with continued increases in arrivals.

Cotton arrivals were reported at around 12,000-15,000 bales of 170 kg, including a negligible amount of new cotton. Nationwide arrivals were estimated at 45,000-50,000 bales. The benchmark Shankar-6 cotton from last season was quoted between ₹56,000-56,300 (approximately $666.24-$669.81) per candy (356 kg), while southern mills were seeking to purchase cotton at ₹56,500-57,000 (approximately $672.19-$678.14) per candy. New cotton was traded at ₹55,500-56,000 (approximately $660.29-$666.24) per candy, though the moisture level exceeded the desired 10 per cent limit.

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)