Slow exports, tariff woes keep South India cotton yarn prices steady

Cotton yarn prices stabilised after a recent fall in the Tiruppur market. Spinning mills are under pressure but are unwilling to reduce prices or offer higher discounts, as their margins are already under stress. A trader from the Tiruppur market told Fibre2Fashion, “The major cause of concern is the slow export orders. Export units are waiting for garment orders for the next Christmas season. Regular garment orders are very slow due to uncertainty regarding tariffs. Industries are also facing a labour shortage, but it can be managed. It is unclear when the cotton yarn market will see improvement.”

In Tiruppur, knitting cotton yarn prices were noted as: 30 count combed cotton yarn at ₹255-263 (approximately $2.98-3.07) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.11-3.19) per kg, 40 count combed cotton yarn at ₹278-291 (approximately $3.25-3.40) per kg, 30 count carded cotton yarn at ₹236-241 (approximately $2.76-2.82) per kg, 34 count carded cotton yarn at ₹241-246 (approximately $2.82-2.88) per kg, and 40 count carded cotton yarn at ₹249-253 (approximately $2.91-2.96) per kg.

In the Mumbai market, cotton yarn was traded at previous levels. However, trading activity remained thin, as buyers were cautious about placing fresh orders. A trader from Mumbai told Fibre2Fashion, “Weather conditions have improved after the recent monsoon rains. But the yarn market is yet to witness increased demand. Current market conditions are not favourable for cotton yarn.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (approximately $16.13-$16.72) and ₹1,340-1,390 (approximately $15.66-$16.25) per 5 kg (excluding GST), respectively. Other prices include: 60 combed warp at ₹315-321 (approximately $3.68-$3.75) per kg, 80 carded weft at ₹1,385-1,450 (approximately $16.19-$16.95) per 4.5 kg, 44/46 carded warp at ₹265-272 (approximately $3.10-$3.18) per kg, 40/41 carded warp at ₹248-255 (approximately $2.90-$2.98) per kg, and 40/41 combed warp at ₹268-272 (approximately $3.13-3.18) per kg, according to trade sources.

In Gujarat, cotton prices remained steady amid sluggish demand and weak sentiment. However, the recent hike in the minimum support price (MSP) provided some support to maintain cotton prices. Traders said the government has increased the MSP for seed cotton purchases in the next season. Nevertheless, no other factor was positive for the natural fibre. Buyers remained cautious about making fresh cotton purchases in the current scenario.

Cotton arrivals were estimated at 3,000–4,000 bales of 170 kg in Gujarat and 20,000–24,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹54,000–54,300 (approximately $631.25–$634.76) per candy of 356 kg, while southern mills were offering at ₹55,000–55,500 (approximately $642.94-$648.79) per candy.

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)