Sentiments improve in south India's cotton yarn market; demand high

Trade sources have cited the production halt in Tamil Nadu and increased buying from the weaving industry as factors supporting cotton yarn prices. With the approaching festival season, the weaving industry is ramping up fabric production, providing a silver lining of hope for the domestic textile value chain. 

In Mumbai, higher cotton yarn prices by ₹2-3 per kg were quoted due to the proposed strike of spinning mills in Tamil Nadu, which is expected to reduce supply. The strike, scheduled to begin on July 15, will involve a hold on sales for its duration. A trader from Mumbai market told Fibre2Fashion, “Market sentiments have improved slightly. A lower supply can further support cotton yarn prices. The weaving industry is keen on purchasing yarn for its future production plans.” 

Mumbai market prices include 60 count carded cotton yarn (for both warp and weft varieties) selling at ₹1,420-1,445 and ₹1,290-1,330 per 5 kg (excluding GST) respectively. Other prices include 60 combed warp at ₹325-330 per kg, 80 carded (weft) cotton yarn at ₹1,325-1,350 per 4.5 kg, 44/46 count carded cotton yarn (warp) at ₹254-260 per kg, 40/41 count carded cotton yarn (warp) at ₹242-246 per kg and 40/41 count combed yarn (warp) at ₹270-275 per kg, according to Fibre2Fashion's market insight tool TexPro. 

Tiruppur also experienced a slight increase in cotton yarn prices, due to the looming production halt and the surge in buying for the festival season. A Tiruppur trader mentioned to Fibre2Fashion, "The weaving industry's activities have sent positive signals to the yarn market. The industry is gradually increasing its buying of cotton yarn, anticipating higher fabric demand from the garment industry next month." 

Prices in the Tiruppur market were noted as 30 count combed cotton yarn at ₹255-262 per kg (excluding GST), 34 count combed cotton yarn at ₹265-272 per kg, 40 count combed cotton yarn at ₹275-282 per kg, 30 count carded cotton yarn at ₹230-236 per kg, 34 count carded cotton yarn at ₹238-245 per kg and 40 count carded cotton yarn at ₹241-246 per kg, as per TexPro. 

Finally, in Gujarat, cotton prices have risen after negotiations for forward deals for the new season's cotton. Haryana origin cotton was sold at around ₹5,800 per maund of 37.2 kg (₹55,200 per candy of 356 kg) for September 2023 delivery. This suggests that cotton prices may rise up to ₹57,500-58,000 per candy in Gujarat. Traders said that spinning mills need to buy cotton in the coming months of the current season which will end in September. Overall, cotton was traded higher by ₹500 to ₹55,700-56,200 per candy with an estimated arrival of 32,000-35,000 bales of 170 kg across India. 

ALCHEMPro News Desk (KUL)