Sentiments weak in south India's cotton yarn market, prices stable

The Mumbai cotton yarn market has not seen any improvement in sales even after Ramadan. Millers, stockists, and traders are uncertain about the demand. Power loom owners are not eager to buy due to a lack of demand from the garment industry. “There was hope for better sales after Ramadan, but it did not materialise due to sluggish demand from the garment industry, which is ultimately driven by consumers who do not have the funds to purchase garments,” a trader from Mumbai market told Fibre2Fashion. Despite this, cotton yarn prices have remained stable. 

In Mumbai, 60 count carded cotton yarn of both warp and weft varieties are being traded at ₹1,550-1,580 and ₹1,410-1,440 per 5 kg (GST extra) respectively. The 60 combed warp is priced at ₹350-353 per kg, while 80 carded (weft) cotton yarn is sold at ₹1,460-1,500 per 4.5 kg. The 44/46 count carded cotton yarn (warp) is priced at ₹280-285 per kg, 40/41 count carded cotton yarn (warp) is sold at ₹272-276 per kg, and 40/41 count combed yarn (warp) is priced at ₹294-307 per kg, according to Fibre2Fashion’s market insight tool TexPro. 

The cotton yarn market in Tiruppur has also seen stable prices due to a lack of improvement in demand. Brands and corporations have reduced their purchases from garment manufacturers as they are facing weak sales at the retail level. The export demand has also been quite poor, putting further pressure on the cotton yarn market. A trader from the Tiruppur market told F2F, “The market demand was not encouraging and that cotton yarn prices may see some adjustments at the start of May. It remains to be seen what approach will be taken by spinners from South India.” 

In Tiruppur, 30 count combed cotton yarn is being traded at ₹278-282 per kg (GST extra), 34 count combed at ₹288-292 per kg, 40 count combed at ₹305-310 per kg, 30 count carded cotton yarn is sold at ₹250-255 per kg, 34 count carded at ₹255-260 per kg, and 40 count carded at ₹265-270 per kg, as per TexPro. 

In Gujarat, cotton prices have come under pressure due to sluggish demand. It has decreased by ₹100 per candy of 356 kg. Traders said that there has been very little trade as spinners are not actively buying. The arrival of A grade Kapas (unginned cotton) was minimal, and ginners are seeking to purchase it, but demand for B grade Kapas, although higher, remains slow. Cotton yarn is priced at ₹61,700-62,200 per candy of 356 kg. Cotton arrivals in Gujarat have been estimated to be 23,000-25,000 bales of 170 kg, while all-India arrivals are estimated at around 80,000-90,000 bales. 

ALCHEMPro News Desk (KUL)