South India cotton yarn faces selling pressure amid poor demand

The Mumbai market witnessed weak demand for cotton yarn. Mills and stockists are under pressure in the current market scenario and are therefore offering discounts to attract potential buyers. A trader from the Mumbai market told Fibre2Fashion, “The market pipeline is already filled for domestic festive demand. Local demand will not be able to provide strong support. Current sluggish demand may not improve until a trade deal is reached between India and the US.”

In Mumbai, 60 carded yarn of warp and weft varieties were traded at ₹1,380-1,430 (~$15.75-16.32) and ₹1,340-1,390 per 5 kg (~$15.29-15.86) (excluding GST), respectively. Other prices include 60 combed warp at ₹315-321 (~$3.59-3.66) per kg, 80 carded weft at ₹1,385-1,450 (~$15.81-16.55) per 4.5 kg, 44/46 carded warp at ₹265-272 (~$3.02-3.10) per kg, 40/41 carded warp at ₹248-255 (~$2.83-2.91) per kg and 40/41 combed warp at ₹268-272 (~$3.06-3.10) per kg, according to trade sources.

In Tiruppur, mills raised prices earlier this month by ₹5 per kg. However, they struggled to sell cotton yarn at these higher prices due to a lack of support from the consumer industry. Market sources said that slow demand prevented mills from effectively raising their selling rates. Although mills aimed to increase cotton yarn prices to boost margins, buyers remained cautious with new deals, lacking confidence in demand from the garment industry.

In Tiruppur, knitting cotton yarn prices were noted as 30 count combed cotton yarn at ₹255-263 (~$2.91-3.00) per kg (excluding GST), 34 count combed cotton yarn at ₹266-273 (~$3-04-3.12) per kg, 40 count combed cotton yarn at ₹278-291 (~$3.17-3.32) per kg, 30 count carded cotton yarn at ₹236-241 (~$2.69-2.75) per kg, 34 count carded cotton yarn at ₹241-246 (~$2.75-2.81) per kg and 40 count carded cotton yarn at ₹249-253 (~$2.84-2.89) per kg.

In Gujarat, cotton also witnessed weak demand from spinning mills, which have reduced their buying due to challenges in selling cotton yarn. Traders reported pressure on cotton prices. However, the Cotton Corporation of India (CCI) is not inclined to reduce its selling prices. Resale prices of CCI cotton have dropped to as low as ₹55,000 per candy of 356 kg. Typically, ginners are trying to sell cotton at ₹58,000 per candy. Prices have declined by ₹500 per candy since last week.

Cotton arrivals fell to around 10,000–11,000 bales of 170 kg, with Gujarat accounting for 1,000–1,500 bales. The benchmark Shankar-6 cotton was quoted at ₹57,500–57,700 (~$656.20–658.48) per candy of 356 kg for stock cotton.

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)