South India cotton yarn prices stable amid thin trade

South India’s cotton yarn market exhibited mixed signals, with thin trade and slow demand observed in the last week of December. Market experts anticipate higher demand next month as summer demand is expected to improve. 

Although knitting cotton yarn prices remained stable in the Tiruppur market, there is optimism about a potential price rise in the coming month. A trader from Tiruppur told Fibre2Fashion, “The recent rise in ICE cotton has boosted market sentiments for cotton yarn. Global cotton prices have gained around 2-3 cents in the last 2-3 sessions, rebounding on strong demand at attractive prices. This may provide support for cotton yarn prices. Additionally, consumer industry demand may pick up in January next year.”

In Tiruppur, knitting cotton yarn prices were noted as: 30 count combed cotton yarn at ₹255-263 (approximately $2.99-3.09) per kg (excluding GST), 34 count combed cotton yarn at ₹264-271 (approximately $3.10-3.18) per kg, 40 count combed cotton yarn at ₹275-285 (approximately $3.23-3.34) per kg, 30 count carded cotton yarn at ₹235-240 (approximately $2.76-2.82) per kg, 34 count carded cotton yarn at ₹240-244 (approximately $2.82-2.86) per kg, and 40 count carded cotton yarn at ₹248-253 (approximately $2.91-2.97) per kg.

The Mumbai market also observed a steady trend with limited trade in cotton yarn. According to trade sources, power looms and auto looms are operating at partial capacity due to slow demand from the garment industry. The year-end effect further dampened market sentiments. However, summer garment production is expected to pick up next month, with trading and industrial activities likely to improve after the first week of January 2025.

In Mumbai market, 60-carded yarn of warp and weft varieties were traded at ₹1,430-1,470 (approximately $16.78-$17.25) and ₹1,370-1,420 (approximately $16.08-$16.67) (excluding GST) per 5 kg, respectively. Other prices include 60 combed warp at ₹334-341 (approximately $3.92-$4.00) per kg, 80-carded weft at ₹1,400-1,470 (approximately $16.43-$17.25) per 4.5 kg, 44/46-carded warp at ₹258-269 (approximately $3.03-$3.16) per kg, 40/41-carded warp at ₹252-262 (approximately $2.96-$3.07) per kg and 40/41 combed warp at ₹284-291 (approximately $3.33-3.42) per kg, according to trade sources.

In Gujarat, cotton prices increased slightly by ₹200-300 per candy (356 kg) over the last couple of days. The recent rise in ICE cotton encouraged buying in the domestic market. Consistent procurement by the Cotton Corporation of India (CCI) also played a positive role, as it has been purchasing large quantities of cotton daily. Market experts estimate cotton arrivals at 32,000-35,000 bales (170 kg each) in Gujarat and 210,000-230,000 bales across the country.

The benchmark Shankar-6 cotton was quoted between ₹53,300-53,800 (approximately $625.56-$631.42) per candy of 356 kg, while southern mills were looking to buy cotton (ex-mill) at ₹54,300-54,800 (approximately $637.29-$643.16) per candy. Seed cotton (Kapas) was traded at around ₹7,400-7,500 (approximately $86.85-$88.02) per quintal.

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)