Sentiments weak in south Indian cotton yarn trade, prices steady

In south India, the cotton yarn trade witnessed a weakness in demand, yet the prices remained at previous levels. The markets in Mumbai and Tiruppur observed stability in cotton yarn prices. According to traders in the Mumbai market, a payment crisis caused lower demand for cotton yarn. They believed that market liquidity had been diverted to the stock market, which is reaching new highs. The Red Sea-Suez Canal issue also dampened market sentiments. Traders mentioned that cotton yarn had experienced good demand a week ago, but the positive tone could not be sustained for long. 

The Mumbai market witnessed a steady trend in cotton yarn prices. The market noted a payment constraint that led to lower demand from the weaker industry. A trader from Mumbai told Fibre2Fashion, “The payment crisis and weakness in the fabric market led to slow movement in cotton yarn. Market liquidity has been diverted to the stock market, which is reaching new highs. The Red Sea crisis also dampened sentiment in the cotton yarn trade.” 

In Mumbai, 60 carded yarn of warp and weft varieties was sold at ₹1,400-1,420 and ₹1,295-1,350 per 5 kg (excluding GST), respectively. Other prices include 60 combed warp at ₹318-325 per kg, 80 carded weft at ₹1,400-1,440 per 4.5 kg, 44/46 carded warp at ₹254-263 per kg, 40/41 carded warp at ₹242-248 per kg, 40/41 combed warp at ₹262-266 and 30/32 carded warp at ₹230-235 per kg, according to Fibre2Fashion's market insight tool TexPro. 

Cotton yarn prices also remained steady in the Tiruppur market. However, the demand was very poor due to the payment crisis. The market experienced slower buying from the weaving industry. A trader from Tiruppur told F2F, “Buying from the weaving industry was better a week ago, but it weakened as it could not receive payments from the garment industry. The market is facing uncertainty in buying from the downstream industry.” 

In Tiruppur, cotton yarn prices were noted as 30 count combed cotton yarn at ₹258-262 per kg (excluding GST), 34 count combed cotton yarn at ₹268-273 per kg, 40 count combed cotton yarn at ₹280-284 per kg, 30 count carded cotton yarn at ₹233-236 per kg, 34 count carded cotton yarn at ₹237-242 per kg and 40 count carded cotton yarn at ₹240-246 per kg, as per TexPro. 

Cotton prices were also stable in Gujarat due to limited buying from spinning mills. Traders reported that spinning mills were cautious about fresh buying as they did not anticipate strong demand from the downstream industry. Meanwhile, farmers were reluctant to sell seed cotton (Kapas) at lower prices as the Cotton Corporation of India (CCI) had begun cotton procurement at the minimum support price (MSP). Current Kapas prices were hovering near the MSP. 

In the Gujarat market, Shankar-6 cotton was quoted between ₹54,500-55,000 per candy of 356 kg. Southern mills were looking to purchase cotton at ₹55,000-55,500 per candy. The arrival was 35,000 bales of 170 kg in Gujarat, with an all-India arrival estimated at 180,000-185,000 bales of 170 kg. 

ALCHEMPro News Desk (KUL)