Sentiments improve in south Indian cotton yarn trade as demand rises

In the Mumbai market, cotton yarn demand improved as the loom sector ramped up fabric production. Rising cotton prices are also encouraging buyers to place fresh orders. A trader from the Mumbai market told Fibre2Fashion, “Power looms and auto looms are seeing strong worker attendance, which has boosted cotton yarn consumption. Notably, fabric production has improved in Surat, Gujarat’s major textile hub. Buyers are closing deals without negotiating for discounts. Cotton yarn prices may rise in the near future.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$16.08-16.66) and ₹1,340-1,390 per 5 kg (~$15.61-16.19) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.67-3.74) per kg, 80 carded weft at ₹1,385-1,450 (~$16.14-16.89) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.09-3.17) per kg, 40/41 carded warp at ₹248-255 (~$2.89-2.97) per kg and 40/41 combed warp at ₹268-272 (~$3.12-3.17) per kg, according to trade sources.

The Tiruppur market also witnessed better demand for cotton yarn, as buyers aimed to purchase before a potential price increase. They anticipated a rise in yarn prices due to the surge in cotton prices. Traders mentioned that the entire textile value chain is hopeful for a trade deal between India and the US, which would provide India with a competitive advantage. The market expects India to benefit from lower tariffs compared to other garment and textile-exporting countries. Spinning mills are now reducing discounts on yarn prices to protect margins in response to increased cotton costs.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.97-3.06) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3.10-3.18) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.24-3.39) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.75-2.81) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.81-2.87) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.90-2.95) per kg.

In Gujarat, cotton prices have increased by ₹800–1,000 per maund of 356 kg since last week. Private traders and ginning mills have raised prices in response to higher auction rates from the Cotton Corporation of India (CCI). According to traders, cotton prices have risen by nearly 6–7 per cent over the past two weeks. Private traders and ginners hold limited cotton stock and are closely tracking CCI’s auction price movements. Cotton arrivals have declined to around 14,000–15,000 bales of 170 kg nationwide, with Gujarat receiving about 2,000–3,000 bales.

More specifically, daily cotton arrivals dropped to 3,000–4,000 bales in Gujarat and 12,000–13,000 bales across all Indian states. The benchmark Shankar-6 cotton was quoted at ₹58,000–58,200 (~$658.52–678.07) per candy of 356 kg for stock 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)