Sluggish cotton yarn demand persists in south Indian, prices steady

The Mumbai market witnessed steadiness in cotton yarn prices after a slight easing earlier this week. Spinning mills are looking to raise yarn prices following the increase in cotton prices, but they are not receiving sufficient support. A trader from Mumbai told Fibre2Fashion, “Spinning mills are facing slow yarn demand from the downstream industry, despite rising cotton yarn prices. Cotton prices have increased after remaining steady for a couple of days. Cotton yarn consumption may not improve until the first week of next month when workers return to power looms and auto looms.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,400-1,430 (approximately $16.39-16.75) and ₹1,340-1,390 per 5 kg (approximately $15.69-16.28) (excluding GST), respectively. Other prices include 60 combed warp at ₹319-323 (approximately $3.74-3.78) per kg, 80 carded weft at ₹1,400-1,460 (approximately $16.39-17.10) per 4.5 kg, 44/46 carded warp at ₹270-275 (approximately $3.16-3.22) per kg, 40/41 carded warp at ₹255-262 (approximately $2.99-3.07) per kg and 40/41 combed warp at ₹272-275 (approximately $3.19-3.22) per kg, according to trade sources.

The Tiruppur market saw stability in cotton yarn prices, but traders and spinning mills are offering discounts of ₹1-2 per kg to attract buyers. However, these discounts are offered only to bulk buyers. Trade sources said that overall demand for cotton yarn remains slow, as domestic and export demand for garments has not shown any improvement. Cotton yarn prices may find support only if garment demand improves. Higher demand for end products will spur garment production.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹257-265 (approximately $3.01-3.10) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.11-3.20) per kg, 40 count combed cotton yarn at ₹278-291 (approximately $3.26-3.41) per kg, 30 count carded cotton yarn at ₹237-242 (approximately $2.78-2.83) per kg, 34 count carded cotton yarn at ₹242-247 (approximately $2.83-2.89) per kg and 40 count carded cotton yarn at ₹250-255 (approximately $2.93-2.99) per kg.

In Gujarat, cotton demand was slightly better for private traders compared to the Cotton Corporation of India (CCI). However, private traders and ginners do not have sufficient stock, as they did not purchase seed cotton during the season due to price disparities. Trade sources said that cotton yarn prices remained stable in Gujarat despite higher demand from private stocks. Prices of private cotton yarn are cheaper than CCI’s auction base price, making private cotton stocks more attractive to buyers.

Cotton arrivals were estimated at 5,000–6,000 bales of 170 kg in Gujarat and 40,000–43,000 bales across the country. The benchmark Shankar-6 cotton was quoted at ₹54,000–54,500 (approximately $632.35–638.21) per candy of 356 kg, while southern mills were bidding at ₹55,000–55,200 (approximately $644.06–649.92) 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)