South India cotton yarn prices decline, but demand may revive soon

The Mumbai market witnessed a further easing of ₹2-3 per kg, as sellers were under pressure to find buyers. A trader from Mumbai told Fibre2Fashion, "There was slow demand from power loom owners as they are not receiving enough orders for fabric. Several fabric manufacturers are facing losses due to a decline in fabric prices. Power loom owners are trying to limit fabric supply to support prices by taking a collective decision."

In Mumbai, 60 carded yarn of warp and weft varieties were sold at ₹1,330-1,370 (approximately $15.88-$16.36) and ₹1,180-1,260 per 5 kg (approximately $14.09-$15.05) (excluding GST), respectively. Other prices include 60 combed warp at ₹314-318 (approximately $3.75-$3.80) per kg, 80 carded weft at ₹1,270-1,310 (approximately $15.17-$15.64) per 4.5 kg, 44/46 carded warp at ₹242-258 (approximately $2.89-$3.08) per kg, 40/41 carded warp at ₹238-246 (approximately $2.84-$2.94) per kg and 40/41 combed warp at ₹278-283 (approximately $3.32-$3.38) per kg, according to trade sources.

The Tiruppur market also noted a decline of ₹2-3 per kg due to slow demand. Although mills did not cut their official mill rate, they are offering higher discounts on bulk purchases. Gujarat mills have officially cut their mill rate by ₹3-4 per kg in the last week. Trade sources said that current market conditions are not encouraging, but demand may improve in a couple of days. The return to normalcy in Bangladesh will raise cotton yarn export demand from the Indian market. Festival demand from the local market is also expected to improve.

In Tiruppur, knitting cotton yarn prices were noted on Thursday as: 30 count combed cotton yarn at ₹262-268 (approximately $3.13-3.20) per kg (excluding GST), 34 count combed cotton yarn at ₹272-277 (approximately $3.25-3.31) per kg, 40 count combed cotton yarn at ₹285-290 (approximately $3.40-3.46) per kg, 30 count carded cotton yarn at ₹237-244 (approximately $2.83-2.91) per kg, 34 count carded cotton yarn at ₹244-248 (approximately $2.91-2.96) per kg and 40 count carded cotton yarn at ₹248-254 (approximately $2.96-3.03) per kg.

In Gujarat, cotton prices continued to remain steady over the last couple of days. Traders reported that cotton trade was very limited due to slow arrivals and a price mismatch between sellers and buyers. Ginners, stockists, and MNCs are determined to sell their stocks at their expected prices, which are higher than the current levels, while spinning mills are trying to purchase the natural fibre at lower prices.

Cotton arrivals were recorded at 2,000-3,000 bales of 170 kg in Gujarat, with all-India arrivals estimated at 10,000-11,000 bales. The benchmark Shankar-6 cotton was quoted between ₹57,000-57,500 (approximately $680.68-$686.65) per candy of 356 kg, while southern mills were looking to buy cotton at ₹57,500-58,000 (approximately $686.65-$692.62) 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)