South India cotton yarn demand slows, prices hold steady

The Mumbai market witnessed stable cotton yarn prices amid below-average demand from power and auto looms. Several factors have impacted yarn buying. A trader from Mumbai told Fibre2Fashion, “Payment conditions are still tight, reducing buying capacity. A huge inventory of fabric is lying with producers and stockists. Power looms are also struggling due to frequent outages. Export and domestic demand for cotton yarn remains sluggish.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,420-1,445 (approximately $16.57-$16.86) and ₹1,360-1,400 per 5 kg (approximately $15.87-$16.33) (excluding GST), respectively. Other prices include 60 combed warp at ₹322-326 (approximately $3.76-$3.84) per kg, 80 carded weft at ₹1,400-1,460 (approximately $16.33-$17.03) per 4.5 kg, 44/46 carded warp at ₹270-275 (approximately $3.15-$3.21) per kg, 40/41 carded warp at ₹255-262 (approximately $2.97-$3.06) per kg and 40/41 combed warp at ₹272-275 (approximately $3.17-3.21) per kg, according to trade sources.

Tiruppur market also reported weak demand from the consumer industry. Spinning mills are attempting to maintain cotton yarn prices despite rising production costs driven by higher cotton prices. However, both export and domestic demand remain slow. Market participants said that initial optimism following the tariff pause has faded, as actual export enquiries have not materialised.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹257-265 (approximately $3.00-3.09) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (approximately $3.10-3.18) per kg, 40 count combed cotton yarn at ₹278-291 (approximately $3.24-3.39) per kg, 30 count carded cotton yarn at ₹237-242 (approximately $2.76-2.82) per kg, 34 count carded cotton yarn at ₹242-247 (approximately $2.82-2.88) per kg and 40 count carded cotton yarn at ₹250-255 (approximately $2.92-2.97) per kg.

In Gujarat, cotton prices rose by ₹200–300 per candy (356 kg) since last Friday, as buyers struggled to secure adequate supply. Buyers are quoting higher prices, but sellers are reluctant to sell. Traders reported that private traders and ginners are holding minimal stocks this season, with the Cotton Corporation of India (CCI) having procured a large share of the output. As a result, actual trade volume remains limited. Nonetheless, local cotton prices are under pressure due to weakness in ICE cotton futures.

Cotton arrivals were estimated at 6,000–7,000 bales (170 kg) in Gujarat and 32,000–35,000 bales nationwide. The benchmark Shankar-6 cotton was quoted at ₹54,000–54,200 (approximately $629.94–$632.28) per candy (356 kg), while southern mills were offering ₹54,800–55,000 (approximately $639.28–$641.61) 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)